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Paid Childcare Leave, Fertility, and Female Labor Supply in South Korea

Author

Listed:
  • Kyeongkuk Kim

    (Ministry of Finance, South Korea)

  • Sang-Hyop Lee

    (University of Hawaii at Manoa)

  • Timothy J. Halliday

    (University of Hawai‘i)

Abstract

We consider the effects of a paid childcare leave subsidy on maternal behavior in South Korea. We employ both difference-in-difference and regression kink techniques. The subsidies had very large behavioral effects. Regression kink estimates indicate that an extra dollar of the monthly subsidy (on annual basis) increased conceptions by 0.06-0.08 percentage points. Difference-in-difference estimates indicate that paid leave subsidies also increased permanent working arrangements by ten percentage points for lower earning women and four percentage points for higher earning women. In a country with the lowest total fertility rate in the world and that often performs middling in rankings of gender inequality, we conclude that paid childcare leave for working women confers positive benefits.

Suggested Citation

  • Kyeongkuk Kim & Sang-Hyop Lee & Timothy J. Halliday, 2021. "Paid Childcare Leave, Fertility, and Female Labor Supply in South Korea," Working Papers 202104, University of Hawaii at Manoa, Department of Economics.
    • Handle: RePEc:hai:wpaper:202104
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    File URL: http://www.economics.hawaii.edu/research/workingpapers/WP_21-04.pdf
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    Cited by:

    1. is not listed on IDEAS
    2. Wookun Kim, 2020. "Baby Bonus, Fertility, and Missing Women," Departmental Working Papers 2011, Southern Methodist University, Department of Economics.
    3. Korkmaz, Aslihan Gizem & Ucar, Erdem, 2024. "Female talent and corporate social performance," International Review of Economics & Finance, Elsevier, vol. 95(C).
    4. Rannveig Hart & Janna Bergsvik & Agnes Fauske & Wookun Kim, 2023. "Causal Analysis of Policy Effects on Fertility," Departmental Working Papers 2309, Southern Methodist University, Department of Economics.
    5. Gema Lax-Martinez & Marco Le Moglie & Matteo Sandi, 2025. "Educated to Be Mothers? School Reform and Demographic Backlash," CESifo Working Paper Series 12251, CESifo.

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    Keywords

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    JEL classification:

    • J18 - Labor and Demographic Economics - - Demographic Economics - - - Public Policy
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth

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