The Impact of Hours Worked on Fertility: A Natural Experiment in Korea

Erin Hye-Won Kim, National University of Singapore

Cutting the number of hours people work might contribute to boosting fertility by reducing work-family conflict. However, the causal impact of the number of hours worked on fertility is largely unknown mainly due to the possibility of reverse causality, and difficulties associated with isolating the effect of work hours from correlated influences. Notably, this study adds valuable evidence to the literature by utilizing a unique natural experiment in Korea, reduction in legal work week from 44 to 40 hours since 2004. This paper evaluates whether the policy had an effect on fertility in Korea, and draws implications for other countries with low fertility rates. I use a difference-in-difference approach and analyze longitudinal data from the Korea Labor and Income Panel Study. To investigate broader impact on the well-being of the family, I examine additional outcome variables including workers’ and their spouses’ health and self-reported satisfaction at home and at work.