Family policy: Towards a better reconciliation of work and family life in OECD countries Seminar presentation: Department of Social Welfare, Seoul National University 7 July, 2006 Willem Adema Head, Asian Social and Health Outreach, OECD (www.oecd.org/els/social/familyfriendly)

Presentation outline Explaining OECD work Some work and family outcomes What are the policy objectives? What are best practice policies? What are key barriers to better outcomes Future concerns

- Childcare policy - Tax/benefit policy - Workplace practices Babies and Bosses: Finding a better balance of work and family commitments is a key issue as it affects parental labour market, poverty family outcomes: the reviews consider 3 policy areas: - Childcare policy - Tax/benefit policy - Workplace practices

OECD work on family-friendly policies Babies and Bosses addresses the wide range of factors that affect parental work and care choices, including childcare and tax/benefit policies and workplace practices The reviews cover 13 countries in 4 volumes: Australia, Austria, Canada, Denmark, Finland, Japan, Ireland the Netherlands, New Zealand, Portugal, Sweden, Switzerland and the United Kingdom. Studies on factors affecting fertility An ‘overview’ Babies and Bosses issue’, with indicators for all OECD countries, will appear later in 2006. Establish an on-line database on Family policies and Family outcomes.

Female employment population rates In recent years, female employment growth has been strongest in Europe…, Female employment population rates

…, which is also important as it reduced the child poverty risk… Poverty thresholds at 50% of median income for the entire population

…, but patterns in fertility have been more diverse across the OECD… Female employment population rates, age 25-54 and total fertility rates, 1995-2004

…, and trends in ‘gaps’ between actual and desired fertility also differ.

Why are policy makers interested in a better reconciliation of work and family life? Fertility concerns Increasing female employment to sustain economic growth and pension systems Tackling child poverty and promoting child development Gender equity

What are policy tools? Non-earmarked financial support for families Child and out-of-school hours care support Does work pay after paying childcare fees How can the workplace become more conducive to female and maternal employment and careers?

Family spending in Sweden and France has a more ‘active’ focus than elsewhere Public social expenditure on family support as a percentage of GDP, 2001 Public support as child allowances, parental leave benefits and childcare support; spending for Australia, New Zealand and the UK includes income support for (sole) parents, while other countries typically record similar payments as ‘social assistance’. Spending on health and housing support also assists families, but not exclusively, and is not included here.

Investment in family-friendly policies pays off through increased labour supply and child development… Available estimates for Canada and Switzerland show high rates of return on childcare investment Target public support first at low-income families as return on investment is potentially very high. For example, half of the costs of HeadStart are recouped before children leave primary school, and in the long-run the programme pays for itself .

Childcare fees do not appear to be excessive,

…, but very young children in Korea do not often participate in childcare,…

…, and, unlike in other OECD countries this also holds for older children of pre-school age.

Workplace practices make it difficult for mothers in Korea to have a career Women perceive they have to choose between work and children; difficult to have both Investment in human resources goes to waste Many employers do not (yet) see the need to make their workplaces more family-friendly, and employment conditions therefore remain unfavourable to women and mothers .

Long working hours mean that fathers in Asia leave mothers no choice but to provide care and/or organise domestic chores Incidence of weekly hours of work among prime-age (20-54) workers, 2002, percentages Sweden Japan

Women are often in low-paid temporary employment in Korea Incidence of temporary employment

Gender wage gaps are very high in Korea Gender earning gap for full-time employees at bottom (20%) and high earning levels (80%), 2003 or latest year available

Labour supply concerns will add to the need for more family support in Korea Total labour force from 1980 to 2000, and projections from 2005 to 2030, in thousands ‘Constant rates’: assumes constant labour force participation rates for men and women from 2000 to 2030; ’Gender equity in participation rates’: assumes that female participation rates reach current male participation rates in each country by 2030.

Future policy development… Invest in families through building a continuum of work and care supports includes different elements: Ensure that young children are cared for all the time Promote gender equity and avoid investment in human capital going to waste and Remove barriers to regular employment for parents Ensure that workplace practices are family-friendly, and that pay is related to performance.