The impact of hours worked on fertility: A natural experiment in Korea

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 omitted variable bias. 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. The law eliminated work on Saturdays for most workers. I assess whether, and, if so, to what extent the policy had an effect on fertility in Korea, and draws implications for other countries with low fertility rates.
This paper uses a difference-in-difference research design, which compares changes in the numbers of newborns before and after the law between two groups, families whose work hours declined due to the law, and other families. Data come from the Korea Labor and Income Panel Study, an annual longitudinal survey which contains information both before and after the policy intervention. 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.