This paper investigated the relative importance of various
factors in determining wage distributions, based on the analysis
-of- variance of log(wages) using the GLM procedure, in order
that we can inquire into the underlying principle of wage
determination in Korea's labor market. The major findings
include the following: First, employee characteristics, including
human capital factors play much more important roles in
determining wage distribution than employment characteristics.
Second, During the 1980s, Korea's labor market has made the
transition to a more competitive structure, and the wage=labor
productivity hypothesis of human capital theory is essentially
being realized as a dominant principle of wage determination in
Korea's labor market.