서비스산업 고용 및 노동생산성 변동의 구조 분석

On both input (employment) and output (production) aspects, the Korean economy has shown much progress into the service-oriented industries, but the growth of output has been far behind that of the input. Rising employment and subsequent decrease in productivity in services is raising concerns regarding low productivity of the service sector and resource allocation inefficiencies. This paper analyzes the structural features and problems in the Korean services focusing on the changes and the relationship between employment and labor productivity in the service industry.The results confirm the following facts: First, when decomposing changes in labor productivity (shift-share decomposition), the features of structural changes in services are quite opposite to those in manufacturing. The ongoing structural changes in services are found to be ineffective in the sense that the growth of high value-added services is slowing down and low productivity services is expanding. Such phenomenon has become stronger since 2000. Second, contribution of employment and productivity by sectors indicates structural underdevelopment of business services is the largest contributor in lowering labor productivity of the overall service industry. Sluggish performance in education and healthcare services is also one of the significant factors that makes the service industry ineffective. Third, according to an empirical analysis of determinants in productivity growth using a changing factor regression, each determinant differently affects productivity in each industry, while measures on wage increase are similar regardless of sectors, which is that the industry has depended on reducing jobs or increasing non-regular workers instead of increasing skilled labor or labor effectiveness.