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By Kim Bo-eun
Migrant workers are paid 64 percent that of Koreans ― which is the greatest pay gap between the two groups among OECD member states, according to a report.
The report released by the Bank of Korea showed that putting domestic workers' pay at 100, migrant workers are paid 64 in Korea. The OECD average was 87.
This is attributed to labor policies which have mostly accepted low-skilled workers on a temporary basis.
The report also showed Korea's percentage of foreign workers stood at 2 percent to 4 percent, while the figures for Australia and Canada ranged from 25 to 30 percent, and those of the U.S., U.K. and Germany ranged from 10 percent to 20 percent.
The report noted that the influx of migrant workers could counter the aging labor market. It cited that foreign workers accounted for more than half of the increase in the economically active population in major economies from 2013 to 2016.
Foreign workers' contribution to the increase in the economically active population was particularly notable in countries such as Canada, Italy and the U.K.
However, the report showed the effect of foreign labor on per capita GDP depended on the academic background and skills of the workers.
The report said Korea needs to turn to foreign labor to deal with the shrinking economically active population, due to the low birthrate and aging society.
However, it pointed out that the pool of migrant workers needs to be diversified, as currently the majority is low-skilled and serving in low-paid sectors.
"Policies that will increase the influx of foreign labor centered on high value-added professions are necessary," the report said.
"At the same time, while attempting to fulfill the diverse demands for foreign labor of various sectors, the government should review the effect it will have on state finances and social integration," it said.
