The Effects of Corporate Restructuring on Workers Health in Korea

Abstract

Considering that Korean society was recently forced to adapt IMF-led adjustment structuring programs, and to implement corporate restructuring, this paper explores the relationships between corporate restructuring, job insecurity, and changes in workers' health in Korea. This study finds that corporate restructuring significantly increased workers' job insecurity, cigarette smoking and alcohol consumption, and consequently deteriorated their physical and psychological health. However, variables specified in corporate restructuring are not robust in explaining the workers' different health behavior and health outcomes. Meanwhile, job insecurity consistently has a significant effect on workers' health behavior and health states. From these findings, I conclude that corporate restructuring indirectly has a significant effect on workers' health via ensuing job insecurity. Finally, this study considers a few alternative policies, such as a corporate restructuring strategy and a government welfare policy that can protect socially disadvantaged workers.