Gender Gaps and Low Fertility Rates in Japan and Korea: Causes and Solutions

The financial burden of raising children, including the costs of larger living spaces and competitive education, further influences couples' decisions on family planning.

Women in Japan and Korea face significant challenges in balancing career and family life. Observing their peers' struggles with delayed promotions post-marriage and childbirth, unequal housework distribution, and inadequate childcare, many young women are hesitant to start or expand families. The financial burden of raising children, including the costs of larger living spaces and competitive education, further influences couples' decisions on family planning.

Current Trends and StatisticsLater marriages and childbirth have become increasingly common in both countries, contributing to their declining fertility rates. Korea's fertility rate stands at 0.72, and Japan's at 1.26, among the lowest globally. Employment and wage disparities between men and women are stark, particularly in leadership roles. Women occupy less than 15% of senior management positions in both Japan and Korea, placing them among the lowest in G20 countries.

Workplace and Societal Challenges

Social norms heavily burden women in Japan and Korea. They perform approximately five times more unpaid housework and caregiving than men, which is more than double the OECD average. Fathers in these economies take less paternity leave compared to peers in other countries, despite generous benefits.

Labor Market Duality: Women are disproportionately affected by labor market duality, with many holding temporary, part-time, or other "non-regular" positions that offer low wages and limited career advancement. Women who leave the workforce to care for young children often return to non-regular positions, facing further penalties from seniority-based promotion systems.

Non-Family-Friendly Work Arrangements: Long working hours, inflexible schedules, and limited telework options make it difficult for women to balance career and childcare responsibilities.

Government and Business Community Actions

Both Japan and Korea have made efforts to support women through enhanced childcare and maternity leave policies, but more comprehensive actions are needed.

Reduce Non-Regular Employment and Encourage Merit-Based Promotions:

Implementing measures to reduce non-regular employment conditions and facilitating job mobility can support women's employment and career growth.

An IMF analysis of Korea suggests that reducing severance payments for regular workers by 30% can significantly increase women's labor force participation and productivity growth.

Addressing tax and social security system distortions that discourage second-income earners from working more can further boost female labor participation.

Expand Childcare Facilities and Encourage Paternity Leave:

Increasing the availability of childcare facilities can positively impact fertility rates and women's career advancement. Japan's fertility rate stabilized after expanding childcare facilities over a decade ago.

Stronger incentives for fathers to take paternity leave can help balance home and childcare responsibilities.

Promote Flexible Work Arrangements:

Expanding telework and flexible working-time arrangements can support increased women's labor participation and allow men to share more home responsibilities.

Economic and Social Benefits

Rising female labor force participation has already contributed to post-pandemic growth recovery in Japan and Korea. Further closing the gender gap can yield significant economic benefits.

Reducing Korea's gender gap in hours worked to the OECD average by 2035 could boost the country's per capita GDP by 18%.

Bridging Japan's gender gap in STEM fields could increase the country's total factor productivity growth by 20% and social welfare by 4%.

Policies aimed at closing gender gaps and shifting cultural norms will enhance growth potential in Japan and Korea despite demographic challenges. Such policies can also help reverse declining fertility trends, allowing women to balance family and career pursuits, thereby contributing significantly to their economies and societies.