"South Korea's Low Birth Rate: Focus on Easing Childcare Burdens, Fundamental Labor Market Changes Needed"

2025 World Economists Conference: "Family Policy and Gender Gaps in the Labor Market"
Understanding Low Birth Rates from a Comprehensive Perspective:
Labor Market Structures, Social Norms, and More
"Need to Examine Long Working Hours, Work Arrangements, and Flexible Schedules"

"The issue of declining birth rates must be addressed not only in terms of economic burdens, but also by considering labor market structures, social norms, and perceptions of parenthood."

Professor Ji-Soo Hwang of the College of Liberal Studies at Seoul National University (center in photo) is presenting on the topic of "Family Policy and Gender Gaps in the Labor Market" at the 2025 World Economists Conference held on the 18th at COEX in Gangnam-gu, Seoul.

Ji-Soo Hwang, a professor at the College of Liberal Studies at Seoul National University, emphasized this point on August 18 at the 2025 World Economists Conference held at COEX in Gangnam-gu, Seoul. Professor Hwang, a student of Claudia Goldin, the Harvard University economics professor who won the 2023 Nobel Prize in Economics, is actively engaged in research on birth rates, family policy, gender gaps in the labor market, and the link between health and employment.

During a session on "Family Policy and Gender Gaps in the Labor Market," Professor Hwang explained, "In the past, there was a clear trade-off between women's participation in economic activities and childbirth. However, more recently, this relationship can weaken depending on labor market structures, family policies, and perceptions of gender roles." She noted that both the female labor force participation rate and the birth rate can rise if the environment is conducive to balancing work and family life.

However, the reality is more complex. Professor Hwang cited several reasons for the even faster decline in birth rates in some high-income countries, including South Korea: first, while the economy has grown rapidly, social norms regarding family and gender roles have changed more slowly, deepening the gap in perceptions; second, high housing costs and employment instability are causing younger generations to delay marriage and childbirth; and third, the pressure to be a "good parent"-that is, the intense culture of child-rearing and educational fervor-has made having children itself burdensome. She also analyzed that changing life priorities and the growing emphasis on self-development and individual freedom have had an impact as well.

Professor Hwang believes that these factors do not operate independently, but are interconnected and collectively influence decisions about having children. She stressed, "We need to understand the issue of declining birth rates from a comprehensive perspective that includes not just economic burdens, but also labor market structures, social norms, and perceptions of parenthood." She went on to point out, "The increasing phenomenon of people choosing not to have children may stem from factors distinct from those of low birth rates, and its social implications may also differ, so in-depth research on this issue is needed."

She argued that in order to alleviate the childcare burden concentrated on women, policies must evolve to fundamentally change the structure of the labor market. While measures such as "paternal (father's) parental leave"-which encourages spouses to participate actively from the early stages of child-rearing-have been discussed, she explained that such approaches cannot fundamentally solve the low birth rate problem. Professor Hwang pointed out, "In Korea, policies so far have focused on reducing the childcare burden through public childcare and parental leave, but there has been little change in the labor market itself." She noted, "Fundamental changes such as shorter working hours, remote work, or flexible working arrangements are still lacking." She argued that leaving children in childcare facilities for long hours is not what parents envision as true work-family balance.

She also identified changing social norms regarding gender roles as a major challenge. She explained, "Due to the mismatch between the pace of economic development and changes in social norms, Korea's younger generation holds much less traditional gender attitudes than their parents' generation. Nevertheless, there is still a social atmosphere in which men feel uncomfortable taking parental leave." She added, "Even if an individual wants to take leave, interactions with those around them, especially with older generations, can make it difficult to put this into practice."

Meanwhile, at the same session, Jessica Pan, a professor at the National University of Singapore, explained the persistence of gender gaps from two opposing perspectives: inherent differences between men and women, and structural constraints. She noted that some argue gender gaps arise from inherent differences-such as preferences, skills, and psychological traits-while others point to structural constraints-such as family responsibilities, social norms, and discrimination-as reasons why women with similar abilities experience different outcomes.

In the latter case, gender gaps can lead to "inefficient resource allocation," making policy intervention necessary. Professor Pan pointed out, "Social norms that expect mothers to handle both work and childcare remain strong, and as women's participation in society increases, resistance to these norms can also intensify." She emphasized, "We need to move beyond seeing work-family balance as a women's issue and fundamentally reflect on the structural causes and the way norms operate."