Economic Crisis and Female Workers - OECD · · 2016-03-297th Meeting of the DAC Network on...
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CHANG Jiyeun Economic Crisis and Female Labor Force in Korea Economic Crisis and Female Workers: Post-1997 Experiences in Korea 7 th Meeting of the DAC Network on Gender Equality, OECD June 10-12, 2009 Jiyeun CHANG (Korea Labor Institute)
Transcript of Economic Crisis and Female Workers - OECD · · 2016-03-297th Meeting of the DAC Network on...
CHANG JiyeunEconomic Crisis and Female Labor Force in Korea
Economic Crisis and Female Workers:
Post-1997 Experiences in Korea
7th Meeting of the DAC Network on Gender Equality, OECD
June 10-12, 2009
Jiyeun CHANG (Korea Labor Institute)
CHANG JiyeunEconomic Crisis and Female Labor Force in Korea
Key points
1. LF withdrawals were severe for women in crisis.
2. Worsen quality of jobs.
- After crisis, non-regular jobs were created with higher
proportion. It caused bi-polarization in income.
3. LM situations might result in social exclusion.
- Non-regular jobs: Stepping stone? Or Trap?
- The characteristics of social safety net is critical.
CHANG JiyeunEconomic Crisis and Female Labor Force in Korea
1997 Economic Crisis
IMF bailout roan applied for at the end of 1997
International devaluation of Korean won and national credit
Corporate bankruptcies increased dramatically
First negative GDP growth since 1980
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GDP Growth Rate (%)
GDP Growth Rate (%)
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Per Capita Income(US$)
Per Capita Income(US$)
CHANG JiyeunEconomic Crisis and Female Labor Force in Korea
1. Labor force withdrawals
Labor force participation rate of women dropped dramatically in 1998, but have recovered the level for 10 years.
General characteristics:
- low LFPR
- huge gender gap
- Distinction between unemployment and out-of-LF is less meaningful for women.
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male female
Labor force participation rates
CHANG JiyeunEconomic Crisis and Female Labor Force in Korea
Non-regular jobs increased
temporary or daily jobs increased, while unpaid family workers decreased
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male female
2. Job Quality (1) non-regular jobs
Compositions of female workers
Proportion of temporary or daily workers
CHANG JiyeunEconomic Crisis and Female Labor Force in Korea
male
female
2. Job Quality (2) Polarization
Between 1993-2004, jobs in upper and lower deciles increased.
Job creations by job quality deciles (1993-2004)
Source: Cheon(2007)
CHANG JiyeunEconomic Crisis and Female Labor Force in Korea
3. Job Quality (2) Polarization, cont.
female male
Female jobs created in lower deciles
Male lost in mid quality jobs
CHANG JiyeunEconomic Crisis and Female Labor Force in Korea
Regular
82%
non-
regular
3%
self/
family
2%
No work
13%
3. Social Exclusion (1) Mobility
LM situations might result in social exclusion.
(1a) Non-regular job looks ‘trap’ rather than ‘stepping stone’
- analysis on adjacent two jobs of a person
- longitudinal data from 1997 to 2006 (KLIPS)
Non-regular job: outflow Regular job: inflow
CHANG JiyeunEconomic Crisis and Female Labor Force in Korea
3. Social Exclusion (1) Mobility, cont
cont.
regular44%
cont.
non-reg10%
cont.
self-emp20%
regular ->
non-reg5%
non-reg
-> regular6%
other
15%
male
cont.
regular38%
cont.
non-reg13%
cont.
self-emp22%
regular->
non-reg7%
non-reg
->regular8%
other
12%
female
(1b) a result of observing job mobility for 10 years (KLIPS)
- Only 39% of women and 44% of men maintain regular jobs.
CHANG JiyeunEconomic Crisis and Female Labor Force in Korea
3. Social exclusion (2) Poverty
(2) Long-term non-regular workers have higher risks of poverty.
- They have 5 times higher risks of low wage than long-term regular workers. (2/3 of mean wage or less)
- Among families of long-term non-regular worker,
relative poverty rate - 21.5%, absolute poverty rate – 16.2%
low wage proportion by mobility types (%)
9.7
47.7
21.5
33.6
28.2
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cont.
regular
cont.
non-reg
cont.
self-emp
reg-
>non-reg
non-reg-
>reg
other
5.27
16.19
9.9211.35
7.46
9.54
6.99
21.54
12.35
15.54
10.6611.75
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cont. regular cont. non-reg cont. self-emp reg->nonreg nonreg->reg other
absolute poverty relative poverty
Poverty rates by mobility types (%)
CHANG JiyeunEconomic Crisis and Female Labor Force in Korea
3. Social exclusion (3) welfare system
total female
in reg. workers in salaried workers
in all workers
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(3a) Welfare system couldn’t disconnect the low wage – poverty relation.
- Korean gov. expanded social insurance system right after econ. crisis (old-age, unemployment, industrial, health).
- However, the system mostly protects regular salaried workers. Less than 30% of female salaried workers are insured from unemployment.
CHANG JiyeunEconomic Crisis and Female Labor Force in Korea
social expenditures (%)
Public assistance
Public service
Social insurance
Legal corporate welfare
Amount in total(Unit:
billion won)Medical
care
1990 11.4 13.9 23.3 25.5 25.7 7,547
2000 8.0 14.3 25.0 14.4 37.8 47,900
2005 12.6 13.1 24.1 26.2 23.1 73,345
3. Social exclusion (3) welfare system
(3b) Although social expenditures increased dramatically, about 50% are allocated exclusively to insured regular workers.
- Strong interaction between LM position and social insurance may result in exclusion of vulnerable female workers from social protection.
