Evolving Demographic Change and Care Support in South Korea and the US
Care support ratios are a simple method to evaluate how demographic change may impact care economies while including the unpaid care work part of the economy, often overlooked. During the second day of the Concluding Annual Meeting, Dr. Gretchen Donehower (University of California at Berkley) presented collaborative research with Dr. Bongoh Kye (Kookmin University, South Korea) that examines whether the production of care could sustain its consumption by combining current age profiles of the society with possible future demographic changes that could occur in the US and South Korea
To calculate care support ratios, you must first estimate current age profiles of some type of care, i.e., eldercare or childcare. Secondly, you need to produce these ratios for some scenarios of future change, i.e., population projections that take the effect of the aging population on the care economy into account. Finally, you estimate the aggregate production and consumption based on the age profiles of this future scenario and take the ratio of the two to give you the care support ratio.
The current age profiles show that women perform a significant proportion of unpaid, non-professional, and professional care work in the US and South Korea, with care provisioning peaking at childbearing and retirement years. Children consume the highest amounts of all three types of care, while the elderly show a greater demand for professional care. The results show that as the South Korean population continues to age, there will be a significant challenge to providing the levels of care required. The US will face a similar challenge, but it would not be as significant as South Korea’s.
To watch the full presentation, see below.
Written by Praveena Bandara, Research Assistant for the Care Economy Project and PhD student in Economics at American University.
- Published in Conferences, Expert Dialogues & Forums, Policy, Unpaid Care Work
Innovations in Gender-Aware Macroeconomic Models
Macroeconomic models are in general not fully gender aware, instead often grouping individuals regardless of gender. However, many studies have found that women and men have different economic and social preferences, caring and spending behaviors, and lifestyle attitudes. It is thus important to incorporate components into models to account for gendered differences and explain economic dynamics of gender gaps in care work, labor force participation, and growth.
Studies conducted as part of the Care Work Economy and Gender-Aware Macroeconomic Modelling for Policy Analysis (CWE-GAM) Project have found innovative ways to introduce gender-aware components into macroeconomic models to fill gaps in the existing literature.
Modeling Aggregate Demand and Supply: Growth & Gender
Braunstein et al. (2019) modeled the interaction between aggregate demand and supply to analyze the causality between growth, gender inequality, and social reproduction. The authors studied four country regime-types: 1) time squeeze, 2) mutual, 3) wage squeeze, and 4) exploitation (see Table 3).
“By proposing that we treat labor as a resource that is produced, the model and estimates presented illustrate how care and social reproduction can have macroeconomic consequences independent of their effects on women’s work participation, and that the gendered structures of care provisioning are elemental to paths for development and growth.”
Braunstein and Tavani (2020) additionally studied country circumstances through “evaluating the equilibrium effects (on gender wage equality, output, and investments in care) of three interventions for gender equality: the direct provision of public care services that increase women’s paid employment; the provision of cash allowances that increase women’s take- up of market-provided or private care services; and an increase in women’s participation in paid labor.”
“The setup focuses on the rate of capacity utilization as a measure of economic activity and gender wage equality as a measure of income distribution:
- The producer’s equilibrium features a direct relationship between economic activity and gender wage equality.
- The goods market equilibrium can be either care-led or inequality-led, depending on the relationship between labor’s share of income and demand for investment in human capacities versus investment in physical capital.”
They have found that higher gender wage equality and output have divergent outcomes for labor shares that manifest in differing investments in care. However, gender wage equality improves in both cases.
Gender-Aware SAM & CGE Model: Growth, Fiscal Policies, Norms & Gender
Studies argue that production activities, labor factors, and representative households be disaggregated in the SAM (Fontana et al. 2020). Lofgren et al. (2020) extend a SAM for gender and care analysis in Korea “to cover household (non-GDP) service production; and its single household was disaggregated into three types, defined to differ in care needs: households with children with head in working-age; households without children with head in working age; and households with the head above working age.”
Fontana et al. (2020) emphasize the need for:
- Labor factors to be disaggregated by gender, skill, age, place of residence, immigration status to capture intersectionality;
- Representing the non-market care sector and its interaction with market sectors;
- Modeling women’s constraints (e.g. care-related social protection and care provision) over the life-cycle through dynamic CGGEs.
Gonzalez Garcia et al. (2020) constructed a model with long-term care and gender, underlining that social norms are endogenous to policies. “Patriarchal norms in particular prevent a fairer distribution of housework and care work, even if the gender wage gap falls. The unfair division of unpaid care work in turn increases the gender wage gap and creates gender-unequal equilibrium outcomes.”
“One of the key pillars for reducing and redistributing unpaid care work is the role of public investment in quality care services and care relevant infrastructure […] Improving the productivity in the care sector is needed to decrease the households’ effective costs of purchasing paid care services” (Gonzalez Garcia et al. 2020).
Workers must be allowed to be caregivers while continuing their professional achievements. Recommended policies include:
- Tax-funded paid parental leave for fathers as well as mothers
- Flexible work hours
- Paid family leave
- Creation of workplace cultures respecting the caregiving responsibilities of women and men
This blog was contributed by Aina Krupinski Puig, Research Assistant for the Care Work and the Economy project.
References:
Braunstein, Elissa, Stephanie Seguino, and Levi Altringer. (2019). “Estimating the Role of Social
Reproduction in Economic Growth.” Care Work and the Economy (CWE-GAM), Program on Gender Analysis in Economics (PGAE), American University. https://doi.org/10.17606/RV6P-6F66.
Braunstein, Elissa, and Daniele Taviani. (2020). “Gender Wage Equality and Investments in
Care: Modeling Equity and Production.” Care Work and the Economy (CWE-GAM), Program on Gender Analysis in Economics (PGAE), American University. https://doi.org/10.17606/KR5J-M452.
Fontana, Marzia, Binderiya Byambasuren, and Carmen Estrades. (2020). “Options for Modeling
the Distributional Impact of Care Policies Using a General Equilibrium (CGE) Framework.” Care Work and the Economy (CWE-GAM), Program on Gender Analysis in Economics (PGAE), American University.https://doi.org/10.17606/G155-C715.
Gonzalez Garcia, Ignacio, Bong Sun Seo, and Maria Floro. (2020). “Norms, Gender Wage Gap
and Long-Term Care.” Care Work and the Economy (CWE-GAM), Program on Gender Analysis in Economics (PGAE), American University. https://doi.org/10.17606/7E2K-1508.
Lofgren, Hans, Kijong Kim, Marzia Fontana, and Martin Cicoweiz. (2020). “A Gendered Social
Accounting Matrix for South Korea.” Care Work and the Economy (CWE-GAM), Program on Gender Analysis in Economics (PGAE), American University. https://doi.org/10.17606/T5MZ-7M49.
Current Situation of Care Work in South Korea: 2018 Family Survey
The Care Work and the Economy project’s 2018 fieldwork in South Korea helped us learn a great deal about how childcare and eldercare is provisioned, both in the paid and unpaid care sectors, in Korea.
The fieldwork consisted of both quantitative and qualitative surveys, including two sets of questionnaires for paid care workers and unpaid care providers. The qualitative component consists of two sets of in-depth interview questionnaires for care providers and recipients.
What We Learned about Family Caregiving in Korea
Although many families use at least one external care service to assist with childcare, 22% of respondents reported that their childcare was done only by family members (Kang et al.). Mothers spent six to seven hours more than fathers taking care of children on average.
(Kang et al.)
In contrast, 67% of respondents reported that their eldercare was done by family members; the rest reported using external care – usually the national LTC program. The primary caregivers were daughters-in-law (37% of the time), daughters (35%), spouses (15.6%), and sons (11%) (Kang et al.). Figure 12 shows how rather than the elder’s biological children, daughters-in-law provided the most care in terms of time, excepting the elder’s spouse.
(Kang et al.)
The cost of eldercare is shouldered solely by the primary caregiver in many cases (Kang et al., 2021)
Only 20% of family eldercare providers reported receiving regular financial support from other family members, less than 30% reported receiving help on an irregular basis, and only 8% of those over 65 years old were currently receiving LTC insurance program benefits.
Unpaid care provisioning impacts women’s employment.
The surveys showed that “families in which mothers were the sole caregiver for the child had the highest proportion of unemployed mothers, whereas families that received help with childcare from grandparents or paid care service had the highest proportion of employed mothers. With respect to both types of care arrangements, it was mostly daughters and daughters-in-law serving as primary caregiver, almost 70% of whom were unemployed.” (Kang et al.).
When asked about their preferred hours spent caring, eldercare workers reported a considerably lower number of hours on average than the actual hours they spent caring (see Table 2).
(Cha and Moon,2020)
Studies in the CWE-GAM Project stress concerns about the “quality of the caregiver’s life and the care they provide as well as the quality of life of the care recipient. Especially given that women are typically taking on the role of caregiver, this issue cannot be detached from concerns regarding women’s labor, women’s quality of life, and gender equality in Korea.”
Current Situation in Korea – Government Implications:
Korea currently “ranks amongst the top 10 OECD countries in terms of public investment in childcare and education” and implemented a mandatory universal LTCI program in 2008 (Peng et al 2021). Figure 2 and 3 show the evolution of child care and care work over time.
(Peng et al. 2021)
(Suh 2020)
Studies report that despite the social care expansion, “childcare and long-term care sectors are heavily dominated by women, and these care workers are largely poorly paid, over-worked, and precariously employed. Care work is also accorded low social and occupational status, and many care workers experience significant social and emotional stress” (Peng et al. 2021; Suh 2020).
Suh (2020) finds that “public investment in quality care services tends to improve the working conditions of care workers (thereby benefiting care recipients), and unregulated private provision tends to worsen them.”
This suggests that “the government and public sector should drive the effort to meet the multi-faceted challenges posed by the growing demand for care work” (Suh 2020).
“The Korean government […] continues to see care work as an extension of women’s unpaid care work and social care expenditure as something that need to be tightly controlled. A better understanding on the part of policymakers about the importance of care and the role of care work and the care economy in generating employment and positive economic growth and supporting a healthy productive economy is therefore necessary.” (Peng et al.)
This blog was contributed by Aina Krupinski Puig, Research Assistant for the Care Work and the Economy project.
References:
Cha, Seung-Eun, and Hyuna Moon. (2020). “A Glimpse of the Context of Family
Caregivers: Actual Time vs. Preferred Time for Elderly Care.” Care Work and the Economy (CWE-GAM), Program on Gender Analysis in Economics (PGAE), American University. https://doi.org/10.17606/dyfz-jp32.
Kang, Eunhye, Ki-Soo Eun, Jiweon Jun, Seung-Eun Cha, and Hyuna Moon. (2021). “Care
Arrangement and Activities in South Korea: An Analysis of the 2018 Care Work Family Survey on Childcare and Eldercare.” Care Work and the Economy (CWE-GAM), Program on Gender Analysis in Economics (PGAE), American University. https://doi.org/10.17606/8ZYD-AA52.
Peng, Ito, Seung-Eun Cha, and Hyuna Moon. (2021). “An Overview of Care Policies and the
Status of Care Workers in South Korea.” Care Work and the Economy (CWE-GAM), Program on Gender Analysis in Economics (PGAE), American University. https://doi.org/10.17606/EHN0-R646.
Suh, Joo Yeoun. (2020). “Estimating the Paid Care Sector in South Korea.” Care Work and the
Economy (CWE-GAM), Program on Gender Analysis in Economics (PGAE), American University. https://doi.org/10.17606/bpdf-v686.
- Published in Child Care, Elder Care, Paid Care Services, Policy, South Korea, Unpaid Care Work