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Seoul Journal of Economics - Vol. 37 , No. 3

[ Article ]
Seoul Journal of Economics - Vol. 37, No. 3, pp. 153-185
Abbreviation: SJE
ISSN: 1225-0279 (Print)
Print publication date 31 Aug 2024
Received 14 Feb 2024 Revised 03 Aug 2024 Accepted 07 Aug 2024
DOI: https://doi.org/10.22904/sje.2024.37.3.001

The Scarring Effects of Initial Labor Market Conditions on South Korean Nurses
Ahmed Saade ; Constantinos Alexiou ; Yacine Belghitar
Assistant Professor, Bayes Business School (formerly Cass); 106 Bunhill Row, London EC1Y 8TZ, UK, Tel: +44 020 7040 8600 (ahmed.saade@city.ac.uk)
Professor, Cranfield University, UK
Professor, Cranfield University, UK

JEL Classification: E24, I11, I24, J24, J28, J64


Abstract

Using a longitudinal dataset spanning the period 2000-2020, and an identification strategy based on instrumental variables, we examine the existence of scarring in the context of the Korean nursing profession. We find that the prevailing unemployment rate at time of graduation has negative effects on nurses’ wages that remain highly significant up to 6 years after joining the labor market, while working hours are positively scarred for up to 10 years. We also estimate a series of happiness equations to understand nurses’ experiences after joining the labor market, and find that a higher unemployment rate at time of graduation is associated with feelings of worse financial conditions, less happy lives, and lower income satisfaction.


Keywords: Human capital, Persistence, Scarring, School-to-work transition, Unemployment

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