Labor Market Outsiders, the Self-Employed, and Partisan Politics

The self-employed population has grown significantly in recent decades due to rapid deindustrialization, increased immigration, and the rise of advanced platforms and the gig economy. This study explores potential conflicts between the self-employed and labor market outsiders, particularly regarding left-leaning parties’ pro-outsider policies. Right-leaning parties may strategically mobilize the self-employed against these policies, potentially fostering a new partisan divide in post-industrial economies. Using a mixed-methods approach, we analyze South Korea’s rapid minimum-wage increases under the Moon Jae-in government (2018) and legislative proposals from 2016 to 2020. We find that conservative legislators are more likely to support bills benefiting the self-employed, while progressive legislators prioritize labor market outsiders, pointing to a growing partisan cleavage around these groups.