Yellow Envelope Act: A Causal-Comparative Analysis on the Effects of Subcontracting Regulatory Policies

To investigate the potential effects of the Yellow Envelope Act on the job security of young construction workers in South Korea, a causal-comparative analysis of unemployment-risk trends surrounding the implementation of similar subcontracting regulations was conducted using OECD Data Explorer data. The analysis found that most subcontracting regulations were associated with a decline in unemployment-risk trends. Combined with the findings of Guers et al. (2014), these results suggest a previously unexplored outcome of subcontracting regulation. They indicate that the Yellow Envelope Act may improve job security for young construction workers in South Korea, filling a gap in the literature regarding its effects on labor-intensive sectors beyond manufacturing and automobiles. The study also contributes to growing evidence, consistent with Yang and Parodi (2025), that the Act may reduce inequitable treatment of workers within subcontracting systems. Finally, it identifies directions for future research.