Miyoung Gu Associate Research Fellow Korean Women ’ s Development Institute ( ) Can unemployment insurance protect women from poverty?

Question : Is social security law gender-neutral?

The only social security system that provides protection to unemployed workers Parental leave allowances and maternity leave allowances in Korea belongs to UI. UI policy has expanded its coverage after 1997 financial crisis. Little previous research on Korean UI’s gender impacts Korean Unemployment Insurance(UI)

Enlargement of unemployment insurance coverage - coverage has been growing In 2004, subscription rate was 50.9% (58% for men and 41% for women) - a broad blind area still exists the unemployment insurance subscription rate is 68.8% among wage earners. the subscription rate - men 74.1%, women 61.9% 12% difference. Gender Gaps in Application Rates

1. Gender impacts affected by exclusion clause 1) economically dependent workers :at least 3% of all wage earners : Women makes up 64.2% of economically dependent workers Female-dominant economically dependent workers: Golf caddies, home-study teachers, after-school program teachers. - Cause of Gender Differentials

1. Gender impacts affected by regulation of exclusion from coverage 2) part-time workers who work for less than 15 hours per week  excluded from UI : 1,200,000 people (approximately 6% of wage earners) : typically female-centered employment, women account for 72% of part-time workers(2014) : subscription rate among part-time workers is only 17.6% : Law manipulation situations related to part-time workers Cause of Gender Differentials

1. Gender impacts affected by regulation of exclusion from coverage 3) Exclusion of domestic workers 0.44% of wage earners 99% of domestic workers are women Cause of Gender Differentials

2. Vulnerability of female employment - serious issue of women ’ s career discontinuity - 37% of women workers in small sized workplaces(25% of men) - female workers account for 53.8% of all non-regular workers.  de facto disparity with regard to accessibility to UI, “ substantive blind area ” due to the lack of recognition of UI qualification or unemployment insurance or employer ’ s noncooperation. Cause of Gender Differentials

2. Vulnerability of female employment The subscription rate of UI by workplace size : workplace with less than 10 workers is only 49.7% : workplace with 10 – 29 workers is 81.7%; workplace with more than 30 workers is 90% or over (as of August 2013). The subscription rate of UI by employment status : non-regular workers ’ subscription rate is 81.5%; that of non-regular workers is 44.0%. a actual blind area of uninsured workers still exists, which accounts for 21% of total wage earners. Cause of Gender Differentials

1. Review the necessity of exclusion clause 1) wider coverage is needed: from employee to workers - limits of Industrial Accident Compensation Insurance Act should be critically considered. 2) part-time workers working less than 15 hours and domestic workers should be included Improvement Direction

1. UI Policy for vulnerable groups needed 1) Encouraging the vulnerable workers to subscribe to UI - Duru Nuri, Korean supporting plan for social insurance fees - 70% of the Duru Nuri recipients is women 2. Introducing an unemployment allowance system Improvement Direction

Current UI system cannot fully reflect women’s vulnerable situation: non-regular employment, a worker at micro-small business, burden of work-life balance … Policy considering the vulnerable workers’ difficulty with accessing to UI is still important. Conclusion