SEOUL, Feb. 19 (Korea Bizwire) — Growth in income for the generation of workers who came into the job market after the 1997 Asian financial crisis is slower than in the past, which will hurt overall earnings during their lifetimes, a research report said Tuesday.
The study by Shim Hye-jung, head of the income and corporate tax analysis division of the National Assembly Budget Office, grouped men born in five-year periods and compared the average wages of the groups.
Results showed that income steadily rose for the groups that were born between 1958 and 1962, and between 1968 and 1972. It stalled for those who were born in 1978 or after, who entered the job market after the crisis.
Assuming that men started to work between the ages of 25 and 29, the monthly starting salary for those born between 1958 and 1962 averaged 1.1 million won (US$975.60).
The salary increased 42.9 percent to 1.57 million won for those born from 1963 through 1967. It went up 36.4 percent to 2.14 million won for people born between 1968 and 1972.
The wages dipped 4.3 percent to 2.05 million won for men who were born between 1973 and 1977. The salary increase slowed for the following generation that was born between 1978 and 1982 to average 2.18 million won.
It was again slow for the 1983-1987 birth year group, stopping at 2.21 million won.
The report suggests that given such a slowdown, the lifetime income was likely to decline for the latter generations.
The financial crisis is cited as a major cause of the gap in income, as the new job market entrants are forced to accept less stable, less paying work due to a protracted economic slump.
“Unless the structural conditions of the youth job market are improved, the gap between the generations may continue to widen,” the report said.