Firm's Knowledge and Good Job

Currently, the most important issue of the Korean economy is employment. Hereupon, while employment rate which means the problem related to amount of employment has been the subject of social and political considerable interest, the problem of the quality of employment has been a target to be relatively marginalized from policy and research. However, in the Korean economy where the polarization of the labor market is becoming even more serious, the labor market policy’s research project must be oriented with the goal of improvement of both the amount of employment and its quality. As the main agents which offer a job are companies, it is more important than anything to allow companies to offer a good job. In this study, I tried to provide analysis on how the act of accumulation of knowledge and the act of offering a good job have mutual complementaries. It is also a work which helps to make sure if the problem of employment can be a same problem of knowledge accumulation of a company. Good job and knowledge of the company is an important concept of this study, so we have developed the theory framework of the mutual complementarity of these two concepts. This complementarity is working beyond each individual company. Namely, our theory framework covers the firm’s relations. Empirically this paper analyzes relationships between the knowledge and good job at the firm level. If the introduction of technology increases the demands of skilled labor by companies, and if the companies improve the custom of working condition for the supply and the maintenance of skilled labor, the companies knowledge will create good jobs with skilled labor. Or, the improvement of the jobs quality can stimulate the accumulation of human capital of the employees within the companies. This paper empirically proved these paths. It is possible to say the quality of work and knowledge of the company has an associated in any way. Firm’s balance knowledge investment of education&training and research&development creates more high skilled and higher-paid good jobs. And this article analyzes the spillover effect of firm’s knowledge on firm’s job quality focused on high skilled and higher paid jobs between chaebol large sized firms, other large sized firms, and small&medium sized firms. Empirically I found that trickle-up effect and trickle-down effect both are not working. This means that the relation among firms is very short-term in Korean economy. And I conclude that chaebol firms’ strategy to exploit the value from small firms are more strengthened after the 1997-98 financial crisis