TY - RPRT AU - Kim, Jungho TI - Employment Effects of Low-Skilled Immigrants in Korea PY - 2013/Mar/ PB - Institute of Labor Economics (IZA) CY - Bonn T2 - IZA Discussion Paper IS - 7287 UR - https://www.iza.org/publications/dp7287 AB - This study examines the impact of inflows of foreign workers on Korean natives' economic performance – namely, employment – through the Employment Permit System, the basis of Korea's system by which to introduce low-skilled immigrants. Using National Employment Insurance data, analyses reveal that the adjustment cost related to the introduction of foreign workers was not substantial over the 2004-2005 period. However, a substitution effect exists between the employment of foreign and native workers in the service industry and among less-educated natives. The results suggest that policy assistance is needed to lessen the impacts caused by inflows of foreign workers and to enhance adjustments within the labor market on a sector-by-sector basis. KW - employment permit system KW - low-skilled immigrants KW - employment of natives KW - adjustment costs ER -