The employment linkage effect of social service industry in South Korea

Abstract

We must develop the social service industry in order to create employment through the social economy in the ongoing period of jobless growth. Organizations of social economy are active primarily in the social service industry to pursue a social objective on a priority basis. We examine the employment linkage effects focused on social service industry as potentially active in vitalizing social economy using the Hypothetical Extraction Method (HEM). There are three results based on the empirical analysis. First, the total employment linkage effect of overall industry estimated by HEM is 38,575,267 persons. Second, the total employment linkage effect in the social service industry is estimated as second highest value next to „Wholesale and retail trade‟. Finally, when manufacturing industry and service industry are compared, average employment linkage inducement effect in the manufacturing industry (11,507 persons) is lower than that in the service industry (34,707 persons). In conclusion, it is essential to intensively foster the social service industry to create employment as a part of regional industrial policies, because the social service industry shows higher employment effects affecting the other industries in the era of growth without enough employment. In addition, it is necessary to make industrial linkage policies with service industries; the linkage relationship among industries can foster the social service industry in the industrial ecosystem.