In Korea, teachers salaries continuously grow with seniority until they reach the
retiring point. We argue that not only the theory of human capital but also the
theories of delayed payment contracts fail to explain for this pattern. We then
explore an alternative explanation based on the political economic interpretation.
We argue that the previous regimes of Korea have utilized the linear earnings
profile by casting parts of their financial cost for hiring qualified teachers onto
the next regime, or the next generations, in the process of rapid expansion of
the educational system.