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The Changes in Rural Labor Market and Policy Tasks
Author Eom, Jinyoung
Views 34351 Publication Date 2017.02.18
Original
Backgrounds & Purpose of Research
Employment and jobs have a direct impact on the lives and wealth of individuals. Through employment and jobs, individuals earn income, spend and save as needed. Expanding into the country, employment and jobs affect the income and spending of the country, which is a major factor affecting the nation's wealth. Therefore, employment and employment policies are important in a country's policy.
However, to discuss employment policy, it is first necessary to understand the structure of the labor market in which employment is determined and the characteristics of agents in the labor market - labor demanders, labor suppliers. In order to understand these characteristics, urban and rural areas should be approached separately. The industrial structure in urban and rural areas is different, and the characteristics of the workers constituting the labor market are also different. Also, within the rural labor market, industrial sector and regional approaches are needed, that is, a separate approach is needed for the agricultural sector and the non-agriculture sector, and the difference in industrial distribution according to regional characteristics affects the high capacity of each sector.
Most of the existing studies are mainly focused on cases of job creation and status research in rural areas. It is hard to find a research that focuses on the labor market in rural areas and shows the whole picture of the change. The most recent research related to this is the study by Lee Seung Ryul et al. (2005). However, over the past decade, there has been a change in the composition of suppliers and industrial structure in the rural labor market.
Therefore, based on the review and analysis of employment changes in various industrial sectors with focus on rural areas, it is necessary to study the overall changes in the rural labor market including agricultural sector as well as non-agricultural sector. In addition, it is necessary to study the factors that triggered these changes and to think about the tasks required for the labor market in rural areas. The purpose of this study is to identify the structure and changes in the labor market in rural areas, to review and analyze the background and factors of labor market changes and related policies and systems, and to propose policy tasks.

Method of Research
The main research method is quantitative analysis through basic statistical analysis and quantitative model using secondary data. The statistical data used for the analysis were the economically active population survey, national business survey, and regional employment survey. Rural labor markets are analyzed by sectors (agriculture, manufacturing, services) and regions (counties, urban and rural composite City), using the data. Specifically, the labor market of the agriculture sector was analyzed through the survey data of the economically active population, and the non -agriculture sector (manufacturing and service industry) analyzed the labor demand side through business survey and the supply side through regional employment survey.
The analytical methods used are technical statistical analysis, Regional Shift-Share Model, and Hierarchical Linear Model. Through technical statistical analysis, we looked at the dynamic changes of the rural labor market in general. In order to analyze the factors that triggered these changes, we analyzed the demand side and the supply side. On the demand side, we examined the effect of the national variables, the regional variables and the internal variables on the changes in the labor market demand in rural areas through the Regional Shift-Share Model using the business survey. On the supply side, we analyzed the behavior of suppliers in the rural labor market through a Hierarchical Linear Model using regional employment survey data. Specifically, we examined how the individual labor supply and the differences in the rural and industrial sectors affect the wage levels of the individual participants in the labor market. It also analyzes the socioeconomic effects of individuals that affect individual wages.

Results of Research
This study consists of five chapters. In Chapter 1, we examined the background and purpose of the research, the scope of the research, the methods and contents, and the previous research on the labor market in rural areas. The previous studies were divided into research related to rural labor market, research related to local labor market and employment, and analysis of determinants related to employment.
Chapter 2 looks at the overall process of change in the labor market in rural areas over the past decade. The process of change was dealt with in terms of population structure, changes in industrial structure, changes in workers' status, and changes in wages of workers by sector.
In Chapter 3, the changes in the overall rural labor market analyzed in Chapter 2 were divided into sectors and examined more closely. The labor market sector is divided into the agricultural sector, the manufacturing sector and the service sector.
In Chapter 4, we analyze the causes of labor market changes in each sector. Specifically, we analyzed the factors influencing the labor market using the Regional Shift-Share Model and the Hierarchical Linear Model.
Finally, Chapter 5 summarizes the discussion, analysis results and implications of the previous chapters, and presents the policy tasks for the future rural labor market.

Researchers: Eom Jinyoung, Kim Kwangseon, and Lim Jieun
Research Period: 2016. 1. ~ 2016. 10.
E-mail address: jeom@krei.re.kr

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