XML

Seoul Journal of Economics - Vol. 29 , No. 4

[ Article ]
Seoul Journal of Economics - Vol. 29, No. 4, pp. 505-528
Abbreviation: SJE
ISSN: 1225-0279 (Print)
Print publication date 30 Nov 2016
Received 26 Sep 2016 Revised 17 Oct 2016 Accepted 21 Oct 2016

Effects of Human Capital on the Economic Adjustment of North Korean Defectors
Byung-Yeon Kim ; Seong Hee Kim
Byung-Yeon Kim, Corresponding Author, Department of Economics, Seoul National University, Gwanak-ro 1, Gwanak-gu, Seoul 08826, Republic of Korea, Tel: +82-2-880-6370, Fax: +82-2-880-4061 (kimby@snu.ac.kr)
Seong Hee Kim, Department of Economics, Seoul National University, Gwanak-ro 1, Gwanak-gu, Seoul 08826, Republic of Korea, Fax: +82-2-880-4061 (mapleday@snu.ac.kr)

Funding Information ▼

JEL Classification: J22, J61, O17, P20


Abstract

This study investigates the effects of combined human capital of North and South Korea on the economic adjustment of North Korean defectors. Household income and job stability are used as outcome variables. Informal economic activities in North Korea exert a significant and positive impact on economic adjustment in the South. Membership in the Workers’ Party and time spent in the South positively affect household income. Overall, acquired human capital from North Korea appears more important than that obtained from the South. This finding has significant policy implications.


Keywords: North Korea, Informal economic activities, Human capital, Economic adjustment

Acknowledgments

Byung-Yeon Kim acknowledges financial support by the National Research Foundation of Korea Grant funded by the Korean Government (NRF-2013S1A5A2A03044461).


References
1. Duleep, Harriet O., and Mark C. Regets. “Measuring Immigrant Wage Growth Using Matched CPS Files.” Demography 34 (No. 2 1997): 239-49.
2. Han, Seong Yeul, and Jung Min Chae. The Behavioral Analysis of North Korean Refugees’ Adaptation Process in South Korean Society. Seoul: North Korean Refugees Foundation, 2003 (in Korean).
3. Hunter, Helen-Llouise. Kim Il-song’s North Korea. Westport, CT: Praeger, 1999.
4. Hum, Derek, and Wayne D. Simpson. “Reinterpreting the Performance of Immigrant Wages From Panel Data.” Empirical Economics 29 (No. 1 2004): 129-47.
5. Jeon, Woo-Taek. Studies on Social and Psychiatric Thoughts on Korean Reunification. Seoul: Yonsei University Press, 2007 (in Korean).
6. Jeon, Woo-Taek, Jin-Sup Um, and Shi-Eun Yu. “A Panel Study on North Korean Defectors’ Attitudes and Life Satisfaction.” Journal of the Korean Neuropsychiatric Association 49 (No. 1 2010): 90-103 (in Korean).
7. Kang, Hye-Young, Eun-Young Hur, Yeon-Sook Jeon, and Bon-Jeong Ku. A Study on Living Standards of North Korean Defectors after 5 Years of Entry to Korea. Seoul: Ministry of Unification, 2009 (in Korean).
8. Kim, Byung-Yeon, and Dongho Song. “The Participation of North Korean Households in the Informal Economy: Size, Determinants, and Effect.” Seoul Journal of Economics 21 (No. 2 2008): 361-85.
9. Kim, Byung-Yeon, and Moonsoo Yang. The State and Markets in North Korea. Seoul: Seoul National University Press, 2012 (in Korean).
10. Kim, Chang Su. DPR Korea 2008 Population Census National Report. Pyongyang: Central Bureau of Statistics, 2009.
11. Kim, Hyun-Soo, Yong-Soon Lee, and Min-Kyoo Kim. “Study on Enhancing Competency for Employability of North Korean Refugees.” Korea Research Institute for Vocational Education & Training, 2013. Available at: http://repository.krivet.re.kr/handle/201303/5180.
12. Korea Hana Foundation. “A Report on Survey Results of Economic and Social Activities of North Korean Defectors in 2015.” Korea Hana Foundation, February 17, 2016 (in Korean). Available at: http://www.koreahana.or.kr/eGovHanaReportDetail.do?pageIndex=1&key=83192.
13. Ministry of Unification. “The Annual Number of North Korean Defectors Entering into South Korea.” Ministry of Unification, 2016 (in Korean). Available at: http://www.unikorea.go.kr/content.do?cmsid=1440.
14. North Korean Refugees Foundation. The Survey Report on North Korean Refugees’ Economic Activities in 2013. Seoul: North Korean Refugees Foundation, 2013 (in Korean).
15. Oh, Kongdan, and Ralph C. Hassig. “North Korea in 2009: The Song Remains the Same.” Asian Survey 50 (No. 1 2010): 89-96.
16. Safi, Mirna. “Immigrants’ Life Satisfaction in Europe: Between Assimilation and Discrimination.” European Sociological Review 26 (No. 2 2010): 159-76.
17. Statistics Korea. “The Number of Employed and Unemployment Rates.” Statistics Korea, September 9, 2015 (in Korean). Available at: http://www.index.go.kr/potal/main/EachDtlPageDetail.do?idx_cd=1063.
18. Statistics Korea. “Monthly Average Working Days, Hours, and Total Income.” Statistics Korea, September 19, 2016 (in Korean). Available at: http://www.index.go.kr/potal/main/EachDtlPageDetail.do?idx_cd=1485.
19. Sul, Jin-Bae, and Eun-Hee Song. “The Effect of Female North Korean Refugees’ Self-esteem and Economic Adaptation on Their Satisfaction with Life in South Korea.” The Journal of Peace Studies 14 (No. 4 2013): 291-314 (in Korean).
20. Yang, Philip Q. “Explaining Immigrant Naturalization.” The International Migration Review 28 (No. 3 1994): 449-77.
21. Yi, Soon-Hyung, Soo-Churl Cho, Changdai Kim, and Meejung Chin. Social and Psychological Acculturation of North Korean Defector Families. Seoul: Seoul National University Press, 2007 (in Korean).
22. Yoon, In-Jin. “Social Adjustments of North Korean Migrants and Measures to Facilitate Their Resettlement.” Journal of Asiatic Research 50 (No. 1 2007): 106-43 (in Korean).
23. Yoon, In-Jin. North Korean Migrants: Life, Perceptions, and Support Policy for Resettlement. Seoul: Jipmundang Press, 2009 (in Korean).
24. Yu, Shi-Eun, Byung-Yeon Kim, Woo-Taek Jeon, and Seung-Ho Jung. “Determinants of Labor Market Participation and Wages of North Korean Female Refugees in South Korea.” Asian Economic Policy Review 7 (No. 1 2012): 113-29.