This study shows the trends of the government expenditure to the job creation policies in Korea. This trends was compared with OECD countries to draw some policy implications to Korean government.
We estimated the effects of job training that is one of the most important methods of job creation on the employment by using the Korean Labor and Income Panel Study (KLIPS). This research shows that Korean government spend more budget to the active labor market policy compare to other employment creation activities.
The empirical results show that the job training is effective to the job creation and also training period is important. This research suggest several policy implications on the job creation policy based on the empirical results.