Abstract
In Korea, recent upward trends in age of marriage and downward trends in fertility rates have motivated the Korean government to provide childbirth grants and Early Childhood Education and Care (ECEC) subsidies. Through such provisions, the government hopes to lower parents’ concerns regarding child-rearing expenses and to promote higher birth rates. Using combined data from the Panel Study of Korean Children (PSKC) and the Korea Longitudinal Study of Women and Families (KLoWF), this study analyzes the relationship between birth rates and anticipated child-rearing expenses. The method of kernel matching was used to combine and analyze information on children from the KLoWF and the child care environment as well as on child-rearing expenses from the PSKC. The study’s findings suggest a significant but weak relationship between birth rates and the anticipated financial costs for raising a child. This relationship is more prominent in the low-education and low-income group than in economically well-situated and highly educated families. Based on the results, we suggest the following policy recommendations: firstly, further research needs to be conducted to determine the effects of governmental support on child-rearing. Secondly, customized support that considers family income and education should be provided to improve birth rates.
Highlights
The total fertility rate in Korea since the 2000s has remained at 1.2, which is among the lowest in industrialized countries (Fig. 1)
A lot of studies have been conducted to identify the underlying reasons for these two trends. Some of these studies have outlined policy recommendations to try to slow down or even reverse these problematic trends: existing studies suggest that the low birth rates in Korea are due to an increase in opportunity cost for new parents, an increase in child care expenses, and the often conflicting obligations of work and family life
Using matched data from the Panel Study of Korean Children (PSKC) and the Korea Longitudinal Study of Women and Families (KLoWF), this study aims to overcome the difficulties previous studies faced
Summary
The total fertility rate in Korea since the 2000s has remained at 1.2, which is among the lowest in industrialized countries (Fig. 1) Both men and women tend to marry at a later age (Fig. 2). A lot of studies have been conducted to identify the underlying reasons for these two trends Some of these studies have outlined policy recommendations to try to slow down or even reverse these problematic trends: existing studies suggest that the low birth rates in Korea are due to an increase in opportunity cost for new parents, an increase in child care expenses, and the often conflicting obligations of work and family life (owing in part to the increasing number of women obtaining a higher education degree).
Sign-in/Register to view highlights & summary 
Published Version (
Free)
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call