Transcript A Comparative Analysis of the Welfare State in OECD Countries

Family Policy across the OECD
Seminar presentation:
KDI School, Seoul, Korea
3 May, 2007
Willem Adema
Head, Asian Social and Health Outreach, OECD
(www.oecd.org/els/social/family)
Presentation outline
• The changing socio-economic context
• What are family policy objectives across the
OECD area?
• What are family policy measures and how
does Korea compare?
• The important role of workplace practices
• Improving birth-rates and employment to
sustain future development
Korea will age more rapidly than other
OECD countries
Population aged 65 and over, relative to the population aged 20-64, 2000 and 2050
2000
80
2050
OECD-2000
OECD-2050
70
60
50
40
30
20
10
0
SWE
JPN
FRA
UK
Source: OECD (2007), Society at a Glance: OECD Social indicators..
DEU
NL
USA
AUS
KOR
Birth rates in Asian OECD countries
have fallen to low levels
3.00
2.50
2.00
1.50
1.00
0.50
0.00
AUS
DEU
FRA
JPN
KOR
TFR1980
NL
TFR 2005
Source: OECD (2007), Society at a Glance: OECD Social indicators..
SWE
UK
USA
Nowadays parents have fewer children than
they would like to have
Desired and observed fertility rates, 1981, 1990 and 2000
4
4
Desired fertility
Total fertility rate
1990
3
2000
3
1981
2
2
1
1
0
0
S
AU
U
DE
A
FR
UK
JP
N
R
KO
D
NL
E
SW
A
US
Source: D'Addio and Mira d'Ercole (2005), Trends and Determinants of Fertility Rates in OECD Countries: The Role of Policies.
Family networks are weakening in Korea..
• From 1970 to 2000 the proportion of
extended families (couples with children and
parents) has fallen from 17 to 7%
• Over the same period, the proportion of
married couples without children has
increased from 5 to 15% of all households
…with fewer children in families than before
Thousands of new-born children in a given year
400
350
300
250
200
150
100
50
0
1981
1990
First child
Source: Korea National Statistical Office.
Second child
2004
Third child and over
…while women are increasingly in paid work
SWE
GBR
USA
NLD
AUS
80
75
70
65
60
55
50
45
40
1980
1985
DEU
1990
JPN
1995
2000
FRA
2005
KOR
80
75
70
65
60
55
50
KOR
45
40
1980
1985
1990
1995
2000
2005
The emphasis underlying policies supporting
work/family life differs across the OECD
• Procuring care for young and old
• Fertility concerns
• Increasing female employment to sustain
economic growth and pension systems
• Tackling child poverty and promoting child
development
• Gender equity
Family policy tools
•
•
•
•
•
•
Non-earmarked financial support for families
Parental leave arrangements
Child and out-of-school hours care support
Support towards education and housing
Health and LTC supports
Workplace supports
Public spending on education is close to
OECD average in Korea….
Public Expenditure on Education as a percentage of GDP by level of education, 2003
Primary
% of GDP
Secondary
Tertiary
7.0
6.0
5.0
OECD Average
4.0
3.0
2.0
1.0
0.0
SWE
USA
FRA
UK
OECD
NLD
Countries ranked in descending order of total spending on education as a percentage of GDP
AUS
GER
KOR
but Spending on family benefits is low, in
contrast to France and Sweden.
Public spending on family support, percentage of GDP, 2003
Cash
Services
Tax breaks towards family
OECD-24 (2.4%)
4.0
4.0
3.5
3.5
3.0
3.0
2.5
2.5
2.0
2.0
1.5
1.5
1.0
1.0
0.5
0.5
0.0
0.0
FRA
SWE
AUS
GER
UK
NLD
USA
JPN
KOR
Notes:
- Public support accounted here only concerns public support that is exclusively for families (e.g. child payments and allowances, parental
leave benefits and childcare support). Spending recorded in other social policy areas as health and housing support). Spending recorded in
other social policy areas as health and housing support also assists families, but not exclusively, and is not included here.
- OECD-24 excludes Greece, Hungary, Luxembourg, Poland, Switzerland and Turkey where Tax spending data are not available.
Source: OECD (2007), Social Expenditure Database (www.oecd.org/els/social/expenditure).
A continuum of care and employment
supports for parents in Scandinavia
• Extensive health, LTC, housing and education
support
• Parental leave of about 12-18 months
• Comprehensive child- and OSH-care systems
• Parents with young children work reduced hours
• This policy model is expensive, so, in many
countries support is income-tested or there are
gaps in public family support
…countries with high female employment
rates now also have the highest fertility rates
Female employment population rates, 2005
3.5
3.0
TFR (2004)
2.5
MEX
USA
ISL
NZL
2.0
IRL
FRA
NLD
LUX
BEL
GBR
FIN
AUS
OECD
1.5
ITA
ESP
HUN
SVK
POL
GRC
NOR
DNK
SWE
AUT
PRT
DEU
JPN
CZE
CAN
CHE
KOR
1.0
40
50
60
70
Employment rates of women
80
90
Relatively high formal childcare enrolment in
Sweden and the US, with Korea on OECD average
Average enrolment rate of children aged under three years of age in formal childcare (2004)
%
0 - 2 years
80
60
40
20
0
FRA
SWE
JPN
UK
GER
AUS
NLD
USA
KOR
With participation among older kids, particularly
high in France
Average enrolment rate of children aged three to five years of age in pre-school educational programmes (2004)
%
3 - 5 years
100.0
80.0
60.0
40.0
20.0
0.0
FRA
SWE
JPN
Source: OECD Family database and OECD Education database.
UK
GER
AUS
NLD
USA
KOR
Work/family reconciliation solutions are also
found in working times, but not in Korea
Share of workers by distribution of usual working hours, by gender, 2005
Men
Women
87
77
KOR
84
64
USA
1 to 19
20 to 29
80
JPN
70
48
30 to 39
40 and over
SWE
40
40 and over
59
30 to 39
DEU
27
54
AUS
23
53
GBR
17
34
FRA
16
47
NLD
10
20 to 29
1 to 19
100
80
60
40
20
0
0
20
40
60
80
100
In Korea workplace practices do not foster
work and family reconciliation
• Long working hours leave little room for care
• Women are often expected to leave work on
marriage/childbirth
• The labour market is unfriendly to women:
– A gender wage gap of 40%; the OECD avg. is 18%
– 33% of women in temporary employment, compared
to 18% on average across the OECD;
– Proportion of women with supervisory responsibilities
is 8%, against 20-30% in many OECD countries.
And while educational attainment in Korea
has improved markedly for both sexes
Percentage of population that has attained at least an upper secondary education, by gender and age group, 2004
Females
Aged 25-34
Aged 45-54
Males
Korea
97
97
Japan
96
92
Sweden
90
93
United States
88
Germany
84
87
82
France
79
81
Netherlands
79
Australia
78
75
68
100
86
80
72
United Kingdom
60
40
Source: OECD Education database
20
0
0
20
40
60
80
100
Unlike other countries, employment among
high-skilled women is relatively low
Female employment rates by educational attainment, 2004
Compulsory education
Employment rate (%)
University education
100
Lower female
employment rate
with university
education
80
60
40
20
0
SWE
UKM
NLD
AUS
GER
USA
FRA
JPN
KOR
A more gender equitable sharing in caring and
working will also reduce labour supply concerns
Total labour force from 1980 to 2000, and projections from 2005 to 2030, in thousands
30
13
Australia
Korea
28
12
26
11
24
10
22
Constant rates
9
Female workers
20
2000
2005
2010
2015
2020
2025
2030
170
2000
2005
2010
2015
2020
2025
2030
2015
2020
2025
2030
210
United States
EU-15
200
160
190
150
180
170
140
160
Constant rates
Female workers
130
150
2000
2005
2010
2015
2020
2025
2030
2000
2005
2010
‘Constant rates’: assumes constant labour force participation rates for men and women from 2000 to 2030; ’Gender equity in
participation rates’: assumes that female participation rates reach current male participation rates in each country by 2030.
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And help pay for the expected rise in, for
example, health and LTC-spending
Total increase in health and long-term care spending, 2005-2050
In percentage points of GDP
12.0
10.0
Cost-pressure scenario
Cost-containment scenario
8.0
6.0
4.0
2.0
0.0
-2.0
To increase both employment and birth-rates,
Korea needs better family-friendly policies
• Investment in formal care support.
• Mould different policies into a coherent system
• More opportunities for women/mothers to
stay/return to regular employment.
• Maintain employer/employee relationship during
parental leave
• Raise awareness among employers on the need
for family-friendly workplaces and help find
solutions that fit individual workplaces
To increase both employment and birthrates, Korea needs better family-friendly
policies (contd.)
• Time-related workplace measures that support
flexi-work and part-time work, as part of (shortterm) regular employment conditions.
• Foster equal career opportunities across the
genders, and ensure that work pays for mothers:
increase the role of performance-related pay.
• Stimulate paternal role in family life.
More information
http://www.oecd.org/els/social/family
D'Addio, A-C. and M. Mira d'Ercole (2005), “Trends and Determinants of Fertility Rates
in OECD Countries: The Role of Policies”, Social, Employment and Migration
Working Papers, No. 27, OECD, Paris (www.oecd.org/els/workingpapers).
OECD (2002), Babies and Bosses, Reconciling Work and Family Life, Vol. 1, Australia,
Denmark and the Netherlands.
OECD (2003), Babies and Bosses, Reconciling Work and Family Life, Vol. 2, Austria,
Ireland and Japan.
OECD (2004), Babies and Bosses, Reconciling Work and Family Life, Vol. 3,
New Zealand, Portugal and Switzerland.
OECD (2005), Babies and Bosses, Reconciling Work and Family Life, Vol. 4, Canada,
Finland, Sweden, and the United Kingdom.
OECD (2007), Facing the Future: Korea’s Family, Pension and Health Policy Challenges.
OECD (2007), Babies and Bosses, Reconciling Work and Family Life: A Synthesis of
findings for OECD countries, forthcoming.