Minimum wage increase could lead to significant job losses in Korea.
A recent study looked at the impact of raising the minimum wage on employment. The goal was to see if increasing the minimum wage would help low-wage workers without causing job losses. The researchers found that a big increase in the minimum wage in 2018 did not lead to significant job cuts. However, if the minimum wage keeps rising too quickly, it could hurt employment in the future. Companies have different ways to deal with higher wages, like raising prices or cutting benefits. The study showed that the effect of a minimum wage increase on jobs depends on how high the minimum wage is compared to the average wage. Overall, the study suggests that while raising the minimum wage can help low-paid workers, it needs to be done carefully to avoid negative effects on employment.