Differential impacts of reduced worktime on work-life balance in Korea

This study analyzes the heterogenous effects of reducing weekly work hour on workers’ quality of life in Korea. Using longitudinal household data from the Korean Labor and Income Panel Study (KLIPS) from 2001 to 2017, this study aims to shed light on how the work hour reduction policy may differently affect workers with different levels of resources and support by demographic and socioeconomic status. Our estimates from the difference-in-differences approach exploiting the staggered implementation of the work hour reduction policy indicate that the policy increased leisure satisfaction of female workers with low educational level and female workers in regular or inflexible work setting. Given Korea’s exceedingly long working hours and inequities in the labor market, a better understanding of the complex factors that affect work-life balance can be helpful in developing policies supportive of healthy work-life balance for workers. This study, to our knowledge, is the first to investigate the composition of workers in the Korean labor market and examine differential impacts of the workhour reduction policy by demographic and socioeconomic status.