As entry into desirable jobs has become increasingly difficult, the
number of young people preparing for employment has grown,
alongside rising societal concern about youth employment. While the
expansion of higher education has raised young people’...
As entry into desirable jobs has become increasingly difficult, the
number of young people preparing for employment has grown,
alongside rising societal concern about youth employment. While the
expansion of higher education has raised young people’s educational
attainment and expectations regarding employment, the quality of first
jobs has deteriorated. Moreover, labor market instability has increased
the risk of downward occupational mobility into unstable jobs,
intensifying competition for a limited number of high-quality
positions. In this context, young people are compelled to invest
greater amounts of time and economic resources to secure better job
positions.
This study focuses on the role of family resources in shaping labor
market transitions under conditions of labor market uncertainty.
Families function as a safety net until young people achieve economic
independence and provide resources that allow better job positions.
Young people supported by family economic resources may choose
occupations to secure greater long-term returns. They may delay entry until they find decent jobs, so they do not have lower job
expectations. In contrast, young people facing economic constraints
may be pushed to begin their careers earlier in low-skilled, low-wage
jobs for immediate subsistence.
Previous studies emphasize the role of family resources in shaping
young people’s labor market transitions, with evidence indicating that
their influence has intensified in recent years. However, this approach
has limitations in capturing the strategic delay of labor market entry
among affluent youth. Furthermore, they do not systematically explain
the causes of this stratification, particularly the socioeconomic
contexts in which inequalities in labor market transitions have
intensified.
Thus, this study addresses three research questions.
First, how do family resources affect the timing and type of labor
market transitions, particularly in the process of entering into regular
or non-regular employment? This examines questions whether greater
family resources are associated with delayed labor market entry, and
whether such delays ultimately increase the likelihood of obtaining
regular employment.
Second, how has the influence of family resources on labor market
transitions changed across cohorts? This analysis focuses on cohort
differences in the probability of obtaining regular positions among
youth with varying levels of family resources.
Third, what are the factors that explain changes in the influence of
family resources? Though this question, this study examines which
structural factors account for changes in the influence of family
resources. Focusing on labor demand, labor market structure, and
labor supply, the analysis considers the youth unemployment rate, the
share of service-sector employment, and the share of university-educated workers as corresponding indicators of each
dimension.
Using waves 1~26 of the Korean Labor and Income Panel Study
(KLIPS), this study analyzes three birth cohorts: the 1980~84,
1985~90, and 1991~96 birth cohorts. To account for the timing of
labor market entry, this study employs event history analysis.
Specifically, discrete-time hazard models were employed to examine
the relationship between family resources and the timing of labor
market entry, while competing risk models were employed to analyze
the relationship between family resources and transition type. Family
resources were operationalized to capture economic resources, using
father’s occupation, father’s education, household income, and net
assets.
The main findings of this study can be summarized as follows.
First, greater family resources are associated with delayed labor
market entry, but although initial transitions are delayed, the
probability of transitioning into regular employment increases over
time. In other words, the negative effect of family resources on
transitions to regular employment weakens over time and eventually
becomes positive after a certain age. This suggests that delayed
entry among affluent youth reflects strategic delay aimed at obtaining
better jobs. Moreover, after controlling for time-invariant unobserved
individual characteristics, the effects of family resources became more
evident. This finding indicates the presence of a strategic delay
associated with family resources, even after controlling for the
possibility that the delay in transitions stems from individual ability
or preferences.
Second, cohort analyses revealed changes in the effects of father’s
occupation, household income, and net assets, while no significant cohort variation was found for father’s education. The negative
effects of father’s occupational status and household income on
regular employment weakened in later cohorts, reflecting an overall
decline in regular employment opportunities that disproportionately
affected youth from lower-status and lower-income families.
The effect of net assets, however, on non-regular employment
transitions have strengthened in more recent cohorts, as low-asset
youth became increasingly likely to enter non-regular employment,
while asset-rich youth were more likely to avoid such transitions.
This pattern can be interpreted as reflecting higher reservation wages
among asset-rich youth, enabling them to avoid unstable jobs and
sustain longer job search.
Third, the influence of family resources varied with socioeconomic
conditions. The effect of father’s occupation varied with increases in
the share of service-sector employment—reflecting a decline in
opportunities for middle-skilled jobs—and with increases in the share
of university-educated workers—indicating educational expansion and
credential inflation. This implies that changes in the effect of father’s
occupation are partly driven by these structural factors.
These patterns can be interpreted as reflecting the tendency of
youth with higher father’s occupational status to pursue high-skilled
and high-educated jobs, thereby being relatively less affected by the
decline of middle-skilled employment. In addition, even under
conditions of educational expansion, they are better positioned to
maintain competitive advantages by pursing advanced educational
pathways, such as graduate education. By contrast, youth with lower
father’s occupational status appear to face greater difficulties under
increasingly competitive labor market conditions.
Next, the effect of household income varied with increases in the youth unemployment rate—capturing economic downturns—and with
increases in the share of university-educated workers. This implies
that changes in the effect of household income are partly driven by
these structural factors.
These findings indicate that youth from high-income households
can afford to delay labor market entry during economic downturns by
pursuing further education or extending their job search. Moreover,
even amid educational inflation, youth from high-income households
are better able to invest in additional credentials, such as professional
examinations, language tests, and certifications.
Finally, the effect of net assets on transitions to non-regular
employment varied with the share of service-sector employment and
the share of university-educated workers. This implies that changes
in the effect of net assets can be partly explained by these structural
factors. As job opportunities decline and educational inflation
intensifies, the risk of downward occupational mobility has increased.
At the same time, youth from asset-rich households are increasingly
able to avoid non-regular employment by extending their job search.
The theoretical implications of this study are threefold.
First, this study contributes to the literature on family resources
and labor market transitions by explicitly incorporating the timing of
transitions into the analysis. It shows that family resources shape the
length of the transition to work and that this duration is closely
associated with subsequent labor market outcomes. In doing so, the
study highlights the importance of transition timing for successful
labor market entry.
Second, although processes of individualization over the life course
have increased the emphasis on individual choice in education and
labor market transitions, this study demonstrates that such choices remain significantly constrained by family resources. Accordingly, the
findings suggest that youth labor market transitions are best
understood through a theoretical framework that emphasizes the
stratification of individualized risks.
Finally, this study extends existing research by moving beyond the
documentation of stratification to identify the structural conditions
under which inequalities in labor market transitions have intensified.
The policy implications of this study are as follows.
In the context of worsening labor market conditions, more young
people remain in extended job search, underscoring the need for
policies that reduce the economic burdens of prolonged
school-to-work transitions. Rather than prioritizing short-term
employment activation alone, institutional support should focus on
ensuring that young people have sufficient time and meaningful
opportunities to make informed occupational choices and to sustain
their job search.