Family Policy : an International Perspective Seminar presentation: Ministry of Gender, Equality and Family 10 October, 2007, Seoul, Korea Willem Adema Head, Asian Social and Health Outreach, OECD (www.oecd.org/els/social/family)

Presentation outline OECD Work on family policy The demographic context What are family policy objectives across the OECD area? How does Korea compare in terms of policy and workplace practices? Options for policy development

OECD work - The OECD Family database www.oecd.org/els/social/family - Babies and Bosses reviews of 13 OECD countries ; Synthesis issue in November 2007 - Fertility studies - Employment Outlook chapters - Starting Strong - Work on Child Well-being - The OECD Family database www.oecd.org/els/social/family

Korea will age more rapidly than most other OECD countries… Population aged 65 and over, relative to the population aged 20-64, 2000 and 2050

Desired and observed total fertility rates, 1981, 1990 and 2000 …in part, because parents have fewer children than they would like and birth rates have fallen... Desired and observed total fertility rates, 1981, 1990 and 2000

1980 Female employment rates, and total fertility rates 2005 …and countries with high female employment rates now also have the highest fertility rates. 1980 Female employment rates, and total fertility rates 2005 NB Different scales on the horizontal axis of the panels; female employment has increased everywhere

Fertility concerns may drive the family policy debate in Korea, but in other OECD countries different policy objectives play a key role Increasing female employment to sustain economic growth and pension systems Tackling child poverty Promoting child development Gender equity

Public spending on family benefits, per cent of GDP, 2003 Policy responses also differ across countries: public family support is limited in Korea… Public spending on family benefits, per cent of GDP, 2003 Public support included here only concerns items that are exclusively for families (e.g. child payments and allowances, parental leave benefits and childcare support). Spending recorded in other social policy areas as health and housing support also assist families, but not exclusively, and is not included here.

…in particular, Nordic countries provide a continuum of care and employment supports Public spending covers: Extensive health, housing and education support Paid parental leave for around one year or more Public childcare and early education Out-of-School-Hours care The policy model is expensive; in Denmark and Sweden tax-to-GDP ratio is 50%. Therefore, many countries income-test support or leave ‘gaps’ in public family support

… as a result, Nordic countries, e. g … as a result, Nordic countries, e.g. Sweden, frontload investment in families…

…while the Korea spending profile reflects education spending patterns.

Nevertheless, childcare enrolment rates in Korea are not all that much lower than in most OECD countries.. Average enrolment rate of children aged under three years of age in formal childcare (2004)

…and participation in among older children is close to the OECD average. Average enrolment rate of children aged three to five years of age in pre-school educational programmes (2004)

Workplace cultures rather than childcare policy are the main barrier to better work/family balance in Korea Women are often expected to leave work on marriage/childbirth Regular employment, pursuing a career and motherhood seem difficult to combine workplace cultures don’t support work/family balance Female labour market outcomes are unfavourable

Working hours in Korea leave little time for family commitments… Share of workers by distribution of usual working hours, by gender, 2005

Female labour market outcomes are unfavourable… The proportion of women with supervisory responsibilities is 8%, against 20-30% in many OECD countries. One third of female workers (and 40 of female workers of childbearing age) are in temporary employment, compared to 18% on average across the OECD

Korea has the largest gender pay gap in the OECD

…and while educational attainment in Korea has improved markedly for both sexes…

…employment among high-skilled women is relatively low in Korea.

Korea also needs to better use its ‘female capital’ to avoid shrinking of the labour force 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.

To increase employment and birth-rates, Korea needs better family-friendly policies.. More investment in quality formal childcare support through a mix of direct investment and money to parents Mould parental leave and childcare policies into a coherent system .

…but above all Korean workplaces practices need to change More opportunities for women/mothers to stay/return to regular employment. Increase the role of performance-related pay Maintain employer/employee relationship during parental leave There is not ‘one-size-fits all solution’, but ‘right to request flexibility’ legislation could help find employers and employees find solutions that suit them both

More information http://www.oecd.org/els/social/family D'Addio, A-C. and M. Mira d'Ercole (2005), “Trends and Determinants of Fertility Rates in OECD Countries: The Role of Policies”, Social, Employment and Migration Working Papers, No. 27, OECD, Paris (www.oecd.org/els/workingpapers). OECD (2002), Babies and Bosses, Reconciling Work and Family Life, Vol. 1, Australia, Denmark and the Netherlands. OECD (2003), Babies and Bosses, Reconciling Work and Family Life, Vol. 2, Austria, Ireland and Japan. OECD (2004), Babies and Bosses, Reconciling Work and Family Life, Vol. 3, New Zealand, Portugal and Switzerland. OECD (2005), Babies and Bosses, Reconciling Work and Family Life, Vol. 4, Canada, Finland, Sweden, and the United Kingdom. OECD (2006), Starting Strong, Early Education and Care. OECD (2007), Babies and Bosses, Reconciling Work and Family Life: A Synthesis of findings for OECD countries, November .