The purpose of this study is to analyze the effects of social policies and social institutional factors on fertility rates in welfare capitalist states and to find ways to overcome the low fertility problem in South Korea. Since 2000, multiple approac...
The purpose of this study is to analyze the effects of social policies and social institutional factors on fertility rates in welfare capitalist states and to find ways to overcome the low fertility problem in South Korea. Since 2000, multiple approaches have been developed to improve the total fertility rate (TFR) in Korea, which has been consistently lower than 1.3. This study seeks to contribute to the discussion on how to improve the fertility rate through a comparative study of countries where increases in TFR have been maintained.
To these ends, this study used time series data 16 OECD countries for the years 1995-2008, and analyzed the effects of social policy and social institutional factors on fertility rates using generalized linear models. Social policy factors included government expenditure on family policy, active labor market policy, and total social policies. Social institutional factors included the characteristics of labor market institutions and the level of gender equality. The results of this study are as follows:
First, the welfare capitalist states shared similar experiences of declining fertility rates with the emergence of new social risks in the transition to post-industrial societies, but the pattern of decline differs according to welfare regime. During the period of analysis, the fertility rate was restored in liberal and social democratic countries and some conservative countries such as Belgium, Netherlands, and France, but in the countries of East Asia and southern Europe, and Germany and Austria, lower fertility rates have continued. Among these countries, some southern European countries such as Spain have experienced a slight recovery in the fertility rate. On the other hand however, the East Asian countries of Korea and Japan have shown no signs of recovery.
Second, those countries with high fertility rates have relatively high levels of spending on active labor market policies and family policies, along with high levels of gender equality and a stable labor market. In contrast, countries with low fertility rates have less stable labor markets and relatively low levels of gender equality. In particular, Korea has the lowest levels of gender equality and government expenditure on social policies as well as an unstable labor market and the longest working hours.
Third, the results of the analysis, which used generalized linear models for each factor, reveal government expenditure on family policy and active labor market policy to have a positive effect on fertility, and employment stability and higher levels of gender equality were also found to increase the fertility rate. A major difference of this study, when compared with previous studies, is the identification of an interaction effect between the instability of the labor market and gender equality on the fertility rate. In particular, a higher level of gender equality reduces the negative effect of labor market instability on the fertility rate. Similarly, a more instable labor market decreases the positive effect of gender equality on the fertility rate. In addition, long working hours were found to have a negative effect on the fertility rate.
Based on these results, this study makes the following recommendations to increase the fertility rate in Korea. First, it is necessary to increase the stability of the labor market, and to introduce initiatives to encourage employers to reduce working hours. Second, institutional support should be expanded, in both the public and private sectors, for both sexes to participate in paid work and to play an equal role in the raising of children. At the same time, it is necessary to continue to expand policies and spending aimed at improving family welfare and employment security.
As this study focuses on a later time period than previous studies, when declining fertility rates began to be halted or reversed, the impact of social policies and social institutional factors can be more clearly observed. Moreover, by using the quantitative indices of gender equality established by the United Nations Development Programme as an independent variable, the present study is able to compare the level of gender equality in many countries. On this basis, through the analysis of interaction effects of the level of gender equality and labor market instability, this study posits that the low birth rate problem should be conceived of as the result of a combination of factors.