Labor Market Outcomes of Health and Social Care Professions in Korea

Abstract

This study investigates the labor market outcomes of Korean health and social care professions, which have been rapidly widening recently. This study differs from previous studies in that it comprehensively examines both the health and social care sectors from the perspective of the entire labor market over a long period. Results show that the increase in health and social occupations in Korea is related to the increase in long-term care, rehabilitation, and nursing care personnel. The number of health professions working in other social care facilities is also gradually increasing. In this context, the increase of such professions between 2011 and 2021 is mainly concentrated in the middle and lower-wage classes. As jobs in the sector are mainly distributed in the low-wage bracket, their expansion has contributed to lowering the average wage of all the wage earners and widening the gender wage gap. Analysis of the wage determinants of health and social professions reveals that only the high-wage professions (such as doctors) earn a relatively higher return based on qualifications or work experience. The panel data analysis shows that health and social professions record a higher turnover rate and a shorter tenure than other non-health and social jobs. Short tenure and frequent movement in the health and social field are due to the career structure that allows easy movement within the qualification system. However, it can be a negative factor for skill formation and quality of care. This study also confirms that government policies sensitively determine the quantity and quality of health and social care professions. For example, number of jobs has increased rapidly during the expansion or change of policies such as the free childcare system, integrated nursing care service, and long-term care insurance system. It also shows that the wage level has increased immediately after adjusting the minimum wage or service unit price. These results mean that the government is the practical financial supporter, employer, and supervisor of health and social professions.