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

Author

Listed:
  • Kim, Kyeongkuk

    (University of Hawaii at Manoa)

  • Lee, Sang-Hyop

    (University of Hawaii at Manoa)

  • Halliday, Timothy J.

    (University of Hawaii at Manoa)

Abstract

We consider the effects of a paid childcare leave subsidy on maternal behavior in South Korea using a difference-in-difference design and a fertility survey with information on conception, contraception, and labor supply arrangements. Childcare subsidies increased conception and decreased contraception. The arc elasticities of the responses of conception and contraception to the childcare subsidy are 0.65 and -0.10, respectively. However, we do not find effects on employment arrangements. 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 some positive benefits.

Suggested Citation

  • Kim, Kyeongkuk & Lee, Sang-Hyop & Halliday, Timothy J., 2022. "Paid Childcare Leave, Fertility, and Female Labor Supply in South Korea," IZA Discussion Papers 15223, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp15223
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    References listed on IDEAS

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    Cited by:

    1. Wookun Kim, 2023. "Baby Bonus, Fertility, and Missing Women," Departmental Working Papers 2308, Southern Methodist University, Department of Economics.
    2. Rannveig Kaldager Hart & Janna Bergsvik & Agnes Fauske & Wookun Kim, 2023. "Causal Analysis of Policy Effects on Fertility," CESifo Working Paper Series 10690, CESifo.

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    More about this item

    Keywords

    childcare leave; fertility; labor supply; Korea;
    All these keywords.

    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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