The Role of Regional Councils in Assisting Resettlement of North Korean Refugees: Evidence from Labor Market Participation

Abstract

This study aims to examine the role of regional councils for assisting North Korean refugees in the formation of social capital that North Korean refugees can draw on in their resettlement efforts. In order to confirm regional councils role and effects as measured by indicators of labor market participation, this study takes both qualitative and quantitative approach. First, a directed content analysis is conducted on transcripts of interviews with 24 North Korean refugees regarding their experience of career adjustment with the purpose of differentiating various channels of information, referrals or support in securing a job. Then, another directed content analysis is conducted on a set of government records of regional councils decisions and actions in order to determine whether and how regional councils affect the formation of social capital in the surroundings of North Korean refugees. Lastly, a panel analysis is conducted to quantitatively assess the effects of regional councils on North Korean refugees resettlement as measured by indicators of labor market integration.

Findings of this study are as follows. First, a directed content analysis on 24 interview transcripts revealed that North Korean refugees receive support from government institutions, North Korean refugees and network of South Korean contacts in the form of information, referrals or recommendation or direct offer for employment. Second, a directed content analysis on 104 government records on the decisions and actions of regional councils demonstrated that by facilitating exchange of accurate information, coordination and cooperation, regional councils are actively engaged in the formation and expansion of social capital among actors involved in community level resettlement assistance in three different dimensions, 1) among government institutions

2) between government institutions and civil society organizations and 3) between North Korean refugees and the community residents. Lastly, fixed-effects and random-effects regression analyses using different policy instrument as control variables showed that ceteris paribus, the number of regional councils per region has statistically significant correlations with North Korean refugees employment rate and unemployment. On the other hand, the same explanatory variable could not account for changes in the out-of-labor-force rate among North Korean refugees per region.