This study examines the phenomenon of dual structure in the Korean labor market and attempts an ethical theological reflection according to the teachings of the Catholic Church. In addition, it suggests practical directions in line with the teachings ...
This study examines the phenomenon of dual structure in the Korean labor market and attempts an ethical theological reflection according to the teachings of the Catholic Church. In addition, it suggests practical directions in line with the teachings of the church to the economic agents who are related to this phenomenon.
In Korea, as the labor market became dual structured (primary labor market and secondary labor market) by the type of employment (regular workers - non-regular workers) and the size of companies (large companies - small and medium-sized enterprises), mobility between markets is restricted, and a serious gap is emerging in various labor environments. There are three causes of the dual structure of the labor market: the appliance of the policy that regulates the labor market only to workers in the secondary labor market after the economic crisis(IMF), Conglomerates' superior subcontract relationship based on monopoly of demand resulting in productivity gap, and conglomerates-regular worker-centered labor union activities. This dual structure of the labor market deepens the overall income inequality in Korea, alienates the socially underprivileged who are to be protected, and acts as a factor that hinders the accumulation of human capital of companies, resulting in weakening the long-term growth engine of the society.
Teachings of the church on the labor market reveals the ethical problems of this phenomenon. Human beings are at the heart of the church's teaching. Labor has a value of a “personal act” based on human dignity. The free market economy is a tool subordinated to serve mankind and society, and goods must be used primarily for universal purposes of God, whom created them for the good of mankind. However, the dual structure of the labor market divides workers into two classes due to economic factors such as cost reduction and employment stability, which derogates the subjective value of labor based on human dignity. In addition, the gap between the labor markets, which is the core of the dual structure phenomenon, violates the equality of human dignity, and workers of the secondary labor market are not guaranteed of their rights as workers due to chronic job insecurity and exposure to poor working conditions. It can also be seen as a direct violation of the rights of workers declared by the church. Moreover, the main cause and effect of the dual structure phenomenon, the monopoly structure of large corporations in Korea and the unfair subcontract relationship itself are contrary to the universal purpose of goods. In addition, the monopoly structure of large corporations deepens the productivity gap between enterprises and deprives the society of its long-term growth engines, which is contrary to the universal use of goods for the good of the whole society. Furthermore, this fact becomes even more evident when considering that the socially underprivileged, who deserve special protection from society within the universal purpose of goods, are exposed to greater competition under the dual structure.
Accordingly, each economy agents related to the labor market must fulfill their roles to overcome the harms of the dual labor market structure and to realize the common good and human dignity in their respective positions. The state, as a subject with the ultimate responsibility for realizing the common good, should realize basic human rights, and establish legal and social mechanisms for equal economic conditions. Businesses should carry out social responsibilities for their workers and their stakeholders, and provide channels for workers to participate in business management as co-owners of the company. In addition, labor unions should break away from the egoistic negotiation strategy centered on large corporations and regular workers, and focus on strengthening the solidarity between regular and non-regular workers, so that all workers' rights can be realized together.