Skill-based dualisation in latecomer economies? Analysing core employment in South Korean firms

The labour market dualisation thesis posits a clear division between low-skill, nonstandard jobs and high-skill, standard jobs, largely driven by firm demands for skill-based quality production. This study interrogates this assumed linkage by analysing firm-level employment patterns in South Korea. Using establishment-based surveys and workplace interviews, the findings largely support the dualisation thesis but reveal a deviation: high-skill jobs can also be assigned to nonstandard employment forms. Notably, ‘core work’ is frequently outsourced to subcontractors, reflecting the enduring influence of institutions initially structured for a low-cost export strategy. This study suggests that South Korea’s latecomer institutions, including hierarchical interfirm relationships dominated by conglomerates ( Chaebols ) and a history of adversarial industrial relations, complicate the dualisation scenarios observed in other advanced coordinated economies. This study highlights how South Korea’s latecomer institutions shape skill-based employment inclusivity, ultimately demonstrating limited labour market inclusiveness in a country known for its remarkable industrial growth.