Jinyeong Yun

Economist at the Bank of Korea

Ph.D. candidate at the Justus Liebig University Giessen

jinyeong.yun@bok.or.kr

A copy of my CV can be found here.

Research Interests

International Macroeconomics, Time Series Econometrics, Economic Inequality

Publications

The Distributional Effects of Capital Inflows

Open Economies Review, 2025

Working Papers

Financial Integration and Wage Inequality: Evidence from European Countries

Abstract In this paper, I examine the impact of financial integration on wage inequality using an unbalanced panel for 20 European countries over the period 1999 to 2021. Focusing on between-firm wage inequality arising from firm heterogeneity, I find that financial integration, measured by the sum of external assets and liabilities, increases wage inequality within industries. The effects are more pronounced in the mid-term rather than in the short-term. Furthermore, the direction of financial integration, i.e., whether it involves an increase in external assets or liabilities, matters: inward financial integration significantly increases wage inequality, while outward does not. I also provide empirical evidence on the channel of distributional effects of financial integration. The financial integration shocks widen the capital intensity (the capital-to-labor ratio) gap within industries, which in turn widens the labor productivity gap. Through this channel, financial integration may primarily benefit large businesses rather than small and medium-sized enterprises (SMEs). Additionally, the impact of financial integration on wage inequality depends on the external financial dependence of individual industries. The level of financial development may mitigate the adverse impact of financial integration on wage inequality. However, this effect is less definitive.

Gains from Gunboats: U.S. Aircraft Carriers and Financial Markets in East Asia

with Peter Tillmann
Abstract Asia, in particular East Asia and the South China Sea, is one of the regions that are particularly exposed to geopolitical risk. We study the impact of an increased presence of the U.S. military in Asia on asset prices and capital inflows in the region. For that purpose, we construct a novel index from local newspapers reporting on the presence of U.S. Carrier Strike Groups in the region and estimate the market impact of a surprise change in this index. Our findings reveal that a higher military presence causes an increase in stock prices, an appreciation of the local currency, and an inflow of foreign capital, but also a higher level of geopolitical risk. Interestingly, during the first Trump administration, some effects change the sign. We also distinguish between newspapers reporting on the deployments of U.S. aircraft carriers related to tensions with North Korea and those related to tensions with China.

Work In Progress

How Does Financial Integration Affect the Wealth Distribution?