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Stylized Facts

The Gender- Specific Effect of Working Hours on Family Happiness in South Korea Robert Rudolf and Seo-Young Cho Georg-August-Universität Göttingen. Stylized Facts.

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Stylized Facts

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  1. The Gender-SpecificEffectof Working Hourson Family Happiness in South KoreaRobert Rudolf and Seo-Young ChoGeorg-August-Universität Göttingen

  2. Stylized Facts South Korea: long working hours, high femaleeducation, traditional genderroles, low female labor forceparticipation • graduallydecreasingworkinghoursoverthe last twodecades; adoptionof 5-day workingweek in 2004  Still 2nd longestworkinghours in the OECD in 2009! • Korea amongthelowestfemalelaborforceparticipationrates in the OECD (61.5%amongthoseaged 20-54 (JP 71%; GER 81%)) • Korea withlowest time spent on „unpaidwork“ in OECD, also lowest time spent on childcare (OECD, 2011) • Korea ranksverylow on male houseworkparticipation (17%) • High femaleeducationoften „toincreaselikelihoodto find a well-educatedhusband“ (Lee, 1998): women 50.5% of all college graduates in 2005 • Part-time workin mostcasesonlyavailable in low-skilledjobs • Before marriage education and labor forceparticipationofwomenpositively related, after marriage negatively (Lee et al., 2008)

  3. Introduction • Paper objectives: • Extendhappinessliterature‘sspatialcoverageto East Asia • Estimationoftheeffectofoverallworkinghoursreduction on familyhappiness • Evidencefrom a societywithvery strong traditional genderroles • Useoflatestorderedlogitfixed-effectsestimators • Findings: • Reduction in workinghoursmakesKoreanfamilieshappier • Part-time jobs still dispreferred („아르바이트“, so-called „Arbeit“) • Strong gender-specificeffects: • Husbands derivemuchhigher utility from working than wives even after controlling for income • Wives most happy whenhousewifeorworking31-40h andwhentheirhusbandworksfull time • Husbands most happy when workingfull time withoutovertimehours (31-50h)

  4. Presentation Outline I. Background • Data andMethodology • Satisfaction Regression Results a) Life Satisfaction b) Hoursand Job Satisfaction IV. Family Division of Labor • ConcludingRemarks

  5. I. Background (Theory) Employmentas a meansofsocialinclusionandself-fulfillment: • Positive welfaregainseven after controlling forincome(Clark and Oswald 1994; Winkelmann and Winkelmann 1998)  Positiveincentiveforfemaleengagement in labormarket AkerloffandKranton‘sgenderidentityhypothesis (2000): • individual behaviorlargelydeterminedbyourvariousidentities, particularlybyourgender, andrelatedexpectedbehaviors • Negativeincentiveforfemaleengagement in labormarket in societieswithvery traditional genderroles Time constraint (housework + marketwork + … = 24h/day) Labor marketconstraints (part-time options, childcare, etc.)

  6. I. Background (EmpiricalEvidence) Booth and Van Ours (2008, The Economic Journal): BHPS, GB Findings: controlling for family income, women prefer working to not-working; theirlifesatisfaction peaks at 30-40 hours; yettheirhoursandjobsatisfactionishighestbelow 30 hours; men most happy with full-time work Booth and Van Ours (2009, Economica): HILDA Survey, Australia Findings: women indifferent between not-working and part-time job, working more than 35 hours decreases their satisfaction; men most happy when workingfull-time between 35 and 50 hours  Part-time jobs in GB andAustralia: solutionforthepursuitofbothexpectedgenderidentityasthemain family care-taker andself-fulfillment via marketwork

  7. II. Data andMethodology Data used • 11 wavesoftheKorean Labor and Income Panel Study (KLIPS) from 1998 to 2008 • Nationallyrepresentative longitudinal studyof urban Koreanhouseholdsmodelled after theUS‘s NLS and PSID • 1998 startedwith 5,000 householdsand 13,783 individuales aged 15 orolder (76.5% maintainedthroughout all waves) • Broadinformation on education, employment, demographic, andsocio-economic variables

  8. II. Data andMethodology Sample restrictions • Marriedandco-residingcoupleslivingwithchildren • Women aged 20-54 (prime yearsofmotherhood) • Menaged 20-64 (husbandsoftenolderthanwivesand a highpercentage still workingwith 64) • Unbalancedpanel, thusminimumrequirementthat an individual ispresent in at least twowaves • Resulting sample: 25,461 person-yearobservationsforwomenand 25,214 person-yearobservationsformen

  9. II. Data andMethodology • Life satisfaction: • “Overall, how satisfied or dissatisfied are you with your life?” • Job satisfaction (onlyfromwave 3 onwards): • “Overall, how satisfied or dissatisfied are you with your main job?” • HoursSatisfaction: • “How satisfied or dissatisfied are you with regard to your main job on the following aspects?”  “Working Hours” • Respondentsareaskedtochooseamong: 5 (verysatisfied) 4 (satisfied) 3 (neithersatisfiednordissatisfied) 2 (dissatisfied) 1 (verydissatisfied)

  10. II. Data andMethodology

  11. II. Data andMethodology

  12. II. Data andMethodology

  13. II. Data andMethodology

  14. II. Data andMethodology Fixed-effectsorderedlogitestimation • Orderedlogitinconsistentifunobservablescorrelatedwithcovariates (e.g. personalitytraitwithoccupationstatus) • Thusfixedeffectsmodelsusuallyestimated in subjective well-beingliterature: • Psychology/sociology: cardinalinterpretationofsatisfactionscores, linear FE • Economics: ordinalapproaches, nostandardworkhorseyet • Recentadvances: Fixed-effectsorderedlogitestimators (e.g. Ferrer-i-Carbonell andFrijters, 2004; Baetschmann, Staub and Winkelmann, 2011)

  15. III. Results

  16. Table 4 cont’d

  17. Robustnesschecks (1) Different reference groups in life satisfaction regressions (2) Earnings instead of household income (Interesting finding: Women value men’s earnings higher than their own) (3) Separate working hours dummies for wage vs. non-wage employed (wage-employed slightly happier) • Subjective health as additional control (only available from wave 6, problematic because endogenous)  No changes in main results

  18. IV. Gender-specific time-usepatterns

  19. V. Concludingremarks • ReductionofworkinghoursmadeKoreanfamilieshappier • Still strong gender-specificeffectsofworkinghours on happiness due to strong traditional genderroles • Menderivemuchhigherbeyond-incomeutilityfromworkingthanwomen • Controlling forfamilyincome, womenaremost happy whenbeinghousewivesorworking 31-40 hours; menwhenworking 31-50 hours • Part-time jobsno alternative in Korea yet due tolowqualitynature • Resultssupportgender-identityhypothesis • Results robust to different fixed-effectsestimatorsandchanges in model specification

  20. V. Concludingremarks • PolicyImplications: • Further hoursofworkreductions • Equalityofchancesattheworkplace • Encouragingchange in genderidentities • Flexible jobandchildcaresolutions • Create part-time jobs in high-skilledsector

  21. Thankyouforyourattention.

  22. II. Data andMethodology Fixed-effectsorderedlogitestimation • Ferrer-i-Carbonell andFrijters (FF-estimator): individual fixedeffectsuiand individual-specificthresholdsλikareintroducedintothe model; thisallowsreformulationoftheordinallogitas a binomiallogit • Baetschmann, Staub and Winkelmann (2011) showthatthe FF-estimatorisslightlydownwardbiasedsincecutoffpointsarechosenendogenously • Theysuggest an ownestimator: BUC-estimator • BUC-estimatorperformsbest in Monte-Carlo simulations

  23. II. Data andMethodology Fixed-effectsorderedlogitestimation Wechosetoapply BUC-estimator, FF-estimator, and linear FE Why FF still necessary? • FF-estimatorconvergestothetruevalueasN ↑, T ↑, and K ↓ as in the case of our sample • Comparability of results with Booth and Van Ours, who use FF-estimator (2008, 2009) • BUC performance needs further validations under different circumstances (e.g. extreme distributions, unbalanced panel) Why linear FE additionally? • Linear FE shown to produce similar results in satisfaction regressions (Ferrer-i-Carbonell and Frijters, 2004) • Straightforward interpretation

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