Session4: Policy Evaluation for Labor and Population Policy
SPEAKERS
ㅇRonald Lee (Professor at University of California-Berkeley / Founding Director of the Center on the Economics and Demography of Aging at Berkeley)
<“Population Aging and Public Policy”>
▸South Korea’s ultra-low fertility rate may not pose a significant problem, depending on how it is managed.
▸The negative impacts of low fertility rates are not as severe as in other aging countries.
▸We should focus on increasing employment and income opportunities for the elderly, promoting savings, and proactively reducing the burden of welfare spending.
ㅇDonna Ginther (Professor at University of Kansas / Director of Institute for Policy & Social Research)
<”Gender and Public Policy: Opportunities for Economic Growth for Korea”>
▸Presented the most important challenges for Korea’s birthrate reduction measures.
▸Ensuring that women can re-enter the workforce after childbirth and reducing working hours can allow them to balance childcare and their careers.
▸Strengthening women’s political and academic positions contributes to future economic growth and health security.
ㅇSang-Hyop Lee (Professor at University of Hawaii, Manoa / Director of Center for Korean Studies)
<”National Transfer Accounts and Policy Evaluation”>
▸Need to maintain and improve selective welfare support systems in light of the rapid aging of the population.
▸This entails considering how to adapt to an aging population era and changing welfare systems in conjunction with shifts in labor and capital markets.
▸Income gains from working in low-productivity sectors for the elderly are limited.
▸Comprehensive reforms across society are imperative, taking into account factors such as the ultra-low fertility rate and aging population.
DISCUSSION HIGHLIGHTS
CHAIR
Hyun Sook Kim [Minister of Gender Equality and Family / Former Senior Presidential Secretary for Employment / Welfare]
DISCUSSANT
Young Sun Ko [Vice President of KDI / Former Deputy Minister of Labor]
Gi-Seob Kwon [Vice Minister of Employment and Labor]
ㅇYoung Sun Ko [Vice President of KDI / Former Deputy Minister of Labor]
– There is a cycle of policy failure. Important issues like birthrates, youth unemployment, and housing are often rushed through without sufficient review and evaluation. This leads to more budgets, projects, government employees, and unresolved problems.
– It is crucial to evaluate government business projects to enhance overall effectiveness by focusing on the ones of good potential. However, in Korea, there are numerous projects, and the clear outcome of the project is rarely discussed.
– Korea seems to be trapped in the cycle of policy failure. We initiate several projects, including the secondary plan, but often neglect proper evaluation after implementation.
– Policies are interconnected in numerous ways. Women’s birthrate and employment are closely linked to Korea’s industrial and corporate structure. People working at SMEs and micro-enterprises are less likely to utilize childcare and career systems than those at large corporations and government. Therefore, it’s necessary to revisit policies for both large companies and small businesses.
– Elementary school hours end early, and there is a need for after-school support. However, the Ministry of Education appears to lack interest in this matter. It’s not just a problem for the Ministry of Education, it’s a concern for our entire education system. Failures in public education have allowed private education to thrive, and public education reforms have led to clashes of values, contributing to declining birthrate.
– Therefore, it is essential to consider the interconnections between policies.
ㅇGi-Seob Kwon [Vice Minister of Employment and Labor]
– A sharp decline in the working-age population due to a declining birthrate and an aging population has resulted in a decrease in growth potential and potential financial stability issues.
-Changes in the labor market, driven by the Fourth Industrial Revolution, necessitate the use of the elderly, women, and foreigners as key labor market participants. It’s time to consider the systematic establishment of immigration policies.
-It is expected that this problem can be addressed through the reform of the labor market structure and the expansion of various options for working hours, such as alleviating structural issues and offering more flexible institutional choices.
-Korea’s wage system is heavily influenced by annual salaries, leading to various problems. To encourage the employment of the elderly, the wage system should be restructured to focus on job performance rather than emphasizing annual salaries.
-Mandating a retirement fund system is necessary for ensuring income in old age, as relying solely on pensions is not feasible.
-Addressing the declining birthrate and women’s career breaks requires expanding options for parental leave, reducing working hours, and promoting shared childcare with fathers’ involvement.
-In the post-pandemic era, developed countries are actively implementing immigration-friendly policies. With changing demographics, a more proactive approach is needed.
-When considering external labor policies and migration policies, we should prioritize social integration and skilled workers. Topics such as residence support and adaptation support need to be discussed.
-Labor reform is crucial to addressing the significant gap between the primary and secondary labor markets. Bold reforms are required to overhaul the existing system and framework.
<PERI, Policy Evaluation Research Institute>
