Inclusive Growth Review of Korea
Creating Opportunities for All
In recent years Korea has stepped up efforts to reduce inequalities in recognition that a fairer economic model is also the most sustainable one. In order to support this new policy direction, the OECD has carried out novel analysis of inclusive growth building on its Framework for Policy Action, developed by the OECD to improve the prospects of the groups left behind. The Inclusive Growth Review of Korea applies, for the first time, the Framework at the national level. Using a dashboard of indicators, the Framework presents policy recommendations to sustain and more equitably share the gains of economic growth by investing in people left behind, supporting business dynamism and inclusive labour markets, and building efficient and responsive governments. In addition, the Inclusive Growth Review of Korea finds that digitalisation risks to compound the disparities of Korean labour markets, and calls for renewed efforts to reduce the lack of opportunities for up- and re-skilling of the working-age population (Chapter 2). To improve the business environment, Korea should address the unbalanced growth across sectors and firm size and unequal distribution of productivity gains across population groups (Chapter 3).
The future of work and skills
The future of work will create unparalleled opportunities in Korea. Leading-edge technologies and markets will generate new and more productive jobs. While the unbundling of jobs into smaller tasks will allow work to be carried out more efficiently, it will also pose challenges. Significant employment and skills upheaval is likely as jobs are destroyed in some areas, even as others emerge elsewhere. This chapter provides a review of challenges arising from three mega-trends: technological progress, globalisation and demographic change, by placing Korea in the international context. It argues that effective policy strategies can address the complex interactions between new and pre-existing challenges, particularly the dualism of the Korean labour market and the lack of opportunities for up- and re-skilling of the working-age population. Finally, it provides an analysis of four under-represented groups in the Korean labour market: women, youth, older workers and immigrant workers.
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