Education level drives wage differentials in Korea's capital region.
This study looked at why wages differ between the capital and non-capital regions in Korea. They found that about 26.9% of the wage difference is because of different worker characteristics in the capital region. Workers in the capital region also have higher education levels, which explains a big part of their wage advantage. When looking at specific job types, more of the wage difference can be explained. This shows that using detailed job categories helps to better understand wage gaps.