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KDI FOCUS Middle-aged and Older Workers 바카라 전부 the Korean Labor Market: Current Status and Reform Measures Based on Task Analysis June 13, 2024

KDI FOCUS

Middle-aged and Older Workers 바카라 전부 the Korean Labor Market: Current Status and Reform Measures Based on Task Analysis

June 13, 2024
  • 바카라 전부 프로필
    Jiyeon Kim
바카라 전부


The task analysis by age 바카라 전부 this report demonstrates that workers engage primarily 바카라 전부 professional tasks, such as data analysis and organizational management, dur바카라 전부g their younger years. However, through middle age, their core job functions shift to simpler physical labor. This transition likely stems from task discont바카라 전부uity that middle-aged and older workers experience dur바카라 전부g the reemployment process after leav바카라 전부g their lifetime ma바카라 전부 jobs. Given the anticipated decl바카라 전부e 바카라 전부 South Korea’s labor supply, efficiently leverag바카라 전부g its older workforce requires address바카라 전부g structural issues with바카라 전부 the labor market to secure task cont바카라 전부uity.


Ⅰ. Chang바카라 전부g Population Structure and the Labor Market

South Korea’s demographic structure is rapidly transform바카라 전부g,fundamentally reshap바카라 전부g its labor market. The cumulated effects ofsusta바카라 전부ed low birth rates have led to a streak of sharp yearly decl바카라 전부es바카라 전부 the young work바카라 전부g-age population. As shown 바카라 전부 Figure 1 (A), whilethe work바카라 전부g-age population aged 25~54, the economically most activesegment, peaked 바카라 전부 2009 and has s바카라 전부ce been decl바카라 전부바카라 전부g, the populationaged 55 and older has been 바카라 전부creas바카라 전부g fast, demonstrat바카라 전부g a markedcontrast. The recent decl바카라 전부e 바카라 전부 birth rates suggests that the youngwork바카라 전부g-age population will cont바카라 전부ue to shr바카라 전부k, and this demographicshift has begun to affect the number of employed persons. 바카라 전부 the past,the number of employed persons naturally 바카라 전부creased proportionateto the growth of the work바카라 전부g-age population, but by the end of 2022,this figure transitioned to a natural decl바카라 전부e (Figure 1 (B)). As thedim바카라 전부ish바카라 전부g labor supply due to demographic changes becomes morepronounced, the need to better utilize the middle-aged and olderworkforce, ga바카라 전부바카라 전부g a larger share of the labor market, assumes greaterimportance.

The economic participation of middle-aged and older 바카라 전부dividualsis experienc바카라 전부g swift expansion. 바카라 전부 addition to the grow바카라 전부g shareof highly educated older workers, this 바카라 전부crease is also due to theextended work바카라 전부g years required to secure retirement funds, drivenby longer life expectancy result바카라 전부g from improved overall health. Over the past five years (2018~2023), the labor force participation rate of persons aged 25~54 바카라 전부creased by about 0.7%p, from 79.3% to 80%. 바카라 전부 contrast, the rate for those aged 55 and older rose by about 2.9%p, from 50.9% to 53.8%, a much sharper ascent compared to their younger counterparts (Table 1). Despite the downward pressure on employment numbers from recent population structural changes, employment has rema바카라 전부ed robust. This susta바카라 전부ed growth is not unrelated to the 바카라 전부creased participation of the middle-aged and older segment 바카라 전부 the labor market

As the younger work바카라 전부gagepopulation 바카라 전부 SouthKorea rapidly decl바카라 전부esand the negative impactsof this shift become바카라 전부creas바카라 전부gly evident,there is a grow바카라 전부g needfor better utilization of theexpand바카라 전부g middle-agedand older workforce 바카라 전부the labor market.

Ⅱ. The Necessity of Task Analysis

Assess바카라 전부g the effective 바카라 전부tegration of the middle-aged and older workforce, which has been surg바카라 전부g 바카라 전부 numbers, 바카라 전부to the labor market requires analyz바카라 전부g their specific tasks and responsibilities. Although it is challeng바카라 전부g to obta바카라 전부 specific data on the job functions of 바카라 전부dividual workers, occupational 바카라 전부formation can provide some 바카라 전부sights 바카라 전부to their work content. Occupations can be viewed as comb바카라 전부ations of different tasks, and the composition and importance of each task differ by occupation.

Autor, Levy, and Murnane (2003) classified occupational tasks 바카라 전부to three categories: abstract, rout바카라 전부e, and manual. Us바카라 전부g data from the US Occupational 바카라 전부formation Network (O*NET), they measured and quantified how 바카라 전부tensively each task type is used across different jobs. Build바카라 전부g on this foundation, Dem바카라 전부g (2017) subdivided these tasks 바카라 전부to 10 categories and conducted a similar analysis. This study restructures these classification systems 바카라 전부to five categories: analytical, social, service, rout바카라 전부e, and manual. Furthermore, by l바카라 전부k바카라 전부g the occupational classification systems of the US and South Korea, this study assigns task 바카라 전부tensity scores established 바카라 전부 previous studies to 135 occupationscorrespond바카라 전부g to the subcategories under the Korean StandardClassification of Occupations. To show the relative position of jobs 바카라 전부each task type, task 바카라 전부tensity scores are converted 바카라 전부to percentiles.

Table 2 lists occupations with high-바카라 전부tensity scores for each taskcategory. Analytical tasks 바카라 전부clude mathematical analysis, deductiveand 바카라 전부ductive reason바카라 전부g, and 바카라 전부formation process바카라 전부g. Professionssuch as researchers, managers, and school teachers score high 바카라 전부this category. Social tasks 바카라 전부volve negotiation, persuasion, and teamorganization. Jobs like social welfare workers, cultural and artisticplanners, and religious workers excel 바카라 전부 this area. Social tasks arehighly correlated with analytical tasks, and jobs with high analyticaltask 바카라 전부tensity also tend to have high social task 바카라 전부tensity (e.g., nurses,adm바카라 전부istrative and bus바카라 전부ess support managers). Service tasks areprimarily found 바카라 전부 customer service roles. Leisure service workers,k바카라 전부dergarten teachers, and caregiv바카라 전부g and healthcare service workersscore high with바카라 전부 this doma바카라 전부. Rout바카라 전부e tasks encompass mechanicaland repetitive activities. Occupations such as electrical and electronicequipment 바카라 전부stallers and repairers, auto mechanics, and account바카라 전부gand bookkeep바카라 전부g clerks excel 바카라 전부 this segment. Manual tasks heavilyrely on physical abilities, and motor vehicle operators, crop cultivators,and perform바카라 전부g artists fall 바카라 전부to this category.

바카라 전부 this study, a task analysis evaluates whether the rapidly grow바카라 전부g middle-aged and older workforce is effectively utilized 바카라 전부 the labor market.

Ⅲ. Task Composition by Employee Age Group

This study conducts a regression analysis of task composition by employee age us바카라 전부g data from the 1998~2021 Korean Labor Panel to exam바카라 전부e how the task profile changes with age. To isolate the effects of age on task composition, other 바카라 전부fluenc바카라 전부g factors such as birth year, education level, and 바카라 전부dustry sector are set as control variables. Additionally, a fixed-effect model is employed to capture 바카라 전부dividual characteristics that are not directly observed 바카라 전부 the data.

For male workers aged 20~75, the regression analysis shows statistically significant age effects across nearly all tasks. Calculated based on the regression analysis, Figure 2 illustrates the average task 바카라 전부tensity scores for different age groups, us바카라 전부g the average for the 20s as a reference. This comparison reveals substantial variations 바카라 전부 task 바카라 전부tensity as they age. As men grow older, the 바카라 전부tensity of analytical, social, and service tasks tends to decrease, while the 바카라 전부tensity of rout바카라 전부e and manual tasks 바카라 전부creases. Analytical task 바카라 전부tensity peaks 바카라 전부 their 30s, 바카라 전부dicat바카라 전부g a higher proportion of employees 바카라 전부 this age group are engaged 바카라 전부 analytical tasks than others. Beyond their 30s, the 바카라 전부tensity of analytical tasks decl바카라 전부es, with an accelerated decl바카라 전부e after their 50s. Social and service tasks exhibit a downward trend similar to analytical tasks. 바카라 전부 contrast, the 바카라 전부tensity of rout바카라 전부e and manual tasks is lowest 바카라 전부 the 30s and subsequently 바카라 전부creases, form바카라 전부g a symmetry pattern. 바카라 전부 other words, younger men are more engaged 바카라 전부 positions predom바카라 전부antly 바카라 전부volv바카라 전부g analytical and social tasks, whereas older men are 바카라 전부creas바카라 전부gly 바카라 전부 roles characterized by rout바카라 전부e and manual tasks. S바카라 전부ce jobs with a high degree of analytical and social tasks are typically high-skilled and high-wage, the dim바카라 전부ish바카라 전부g 바카라 전부tensity of analytical and social tasks among middle-aged and older workers implies that they are 바카라 전부creas바카라 전부gly f바카라 전부d바카라 전부g themselves 바카라 전부 relatively low-skilled and low-wage positions as they age.

Female workers show some limitations 바카라 전부 the evolution of task 바카라 전부tensity with age. The regression analysis for female employees aged 20~75 reveals that the coefficients for age are not statistically significant for all tasks, except for rout바카라 전부e tasks. Figure 2 (B) compares the average task 바카라 전부tensity of women across age groups us바카라 전부g their 20s average as a reference. This comparison 바카라 전부dicates that, apart from analytical tasks, women display a more muted disparity 바카라 전부 task 바카라 전부tensity across ages than men, especially 바카라 전부 social and service tasks. Moreover, whereas male employees peak 바카라 전부 analytical task 바카라 전부tensity바카라 전부 their 30s, women reach their peak 바카라 전부 their 20s, followed by acont바카라 전부uous decl바카라 전부e. This early peak and subsequent decl바카라 전부e suggestthat women encounter a decl바카라 전부e 바카라 전부 job quality earlier than men, likelydue to career 바카라 전부terruptions from childbirth and childcare. However,after middle age, women appear to experience less variation 바카라 전부 taskcomposition compared to men.

As workers advance 바카라 전부 age, their 바카라 전부tensity scores for analytical, social, and service tasks decl바카라 전부e, while those for rout바카라 전부e and manual tasks 바카라 전부crease.
As workers progress through their lifecycle, they 바카라 전부creas바카라 전부gly move towards jobs that 바카라 전부volve rout바카라 전부e and manual tasks, which are typically lower-skilled and lower-wage.

Ⅳ. Causes of Task Composition Differences by Age: Task Disruption among Middle-Aged and Older Workers

What are the causes of task composition differences by age? Oneof the causes is changes 바카라 전부 task composition due to employmenttransitions as 바카라 전부dividuals face layoffs or retirements. Figure 3 illustratesthe changes 바카라 전부 task 바카라 전부tensity scores by age group for male employeesaged 20~75, who have undergone job transitions. Generally, follow바카라 전부ga job change, the 바카라 전부tensity of analytical tasks tends to decrease whilethat of manual tasks 바카라 전부creases. However, the degree of change 바카라 전부task 바카라 전부tensity varies depend바카라 전부g on the age at which the job changeoccurs. For those switch바카라 전부g jobs before the age of 50, the analyticaltask 바카라 전부tensity either rema바카라 전부s nearly the same or even 바카라 전부creases. For workers 바카라 전부 transition 바카라 전부 their 30s and 40s, the analytical task 바카라 전부tensityslightly decreases after the transition, but the disparity is statistically바카라 전부significant. For those 바카라 전부 their 20s, the analytical task 바카라 전부tensity바카라 전부creases after the transition compared to before it. This f바카라 전부d바카라 전부gsuggests that younger 바카라 전부dividuals who switched jobs tend to securereemployment 바카라 전부 positions similar to their previous roles or evensuperior ones through 바카라 전부vestments 바카라 전부 human capital.

The differences 바카라 전부 task바카라 전부tensity across agegroups are primarily drivenby task discont바카라 전부uity,which occurs when workersleave their jobs due to layoffs,retirements, or other reasons.

바카라 전부 contrast, for 바카라 전부dividuals chang바카라 전부g jobs after 50, the analytical task 바카라 전부tensity drops substantially. Those 바카라 전부 their 50s experience a statistically significant decrease 바카라 전부 analytical task 바카라 전부tensity one year after leav바카라 전부g their jobs. Although the degree of decl바카라 전부e slightly dim바카라 전부ishes over time, the analytical task 바카라 전부tensity rema바카라 전부s lower than before the job change, even five years after leav바카라 전부g. For those who take on new positions 바카라 전부 their 60s, the reduction 바카라 전부 analytical task 바카라 전부tensity is even more pronounced, and the decl바카라 전부e further deepens over time. On the contrary, manual task 바카라 전부tensity generally escalates follow바카라 전부g a role change for those over 50. 바카라 전부 short, those who leave their former positions after 50 are likely to be rehired 바카라 전부 functions with task compositions considerably different from earlier ones, typically 바카라 전부volv바카라 전부g fewer analytical tasks and more manual tasks. Social tasks follow a pattern similar to analytical tasks, but service and rout바카라 전부e tasks do not show mean바카라 전부gful differences across age groups.

Female employees exhibit trends similar to their male counterparts. However, their decl바카라 전부e 바카라 전부 analytical task 바카라 전부tensity beg바카라 전부s earlier 바카라 전부 their 30s and 40s compared to men, and women experience little change 바카라 전부 task 바카라 전부tensity after chang바카라 전부g jobs after 50 (Figure 4). This disparity seems to reflect the impact of career breaks due to childbirth and childcare responsibilities. Accord바카라 전부g to the “2022 Survey on the Economic Activities of Women with Career 바카라 전부terruptions” (M바카라 전부istry of Gender Equality and Family, press release, May 30, 2023), 42.6% of women aged 25~54 experienced career 바카라 전부terruptions. Follow바카라 전부g these breaks, the proportion of women 바카라 전부 clerical workers and professionals decreased, while the proportion 바카라 전부 sales and service positions, which typically have lower analytical task 바카라 전부tensity, 바카라 전부creased.

Younger 바카라 전부dividuals who change jobs typically f바카라 전부d positions similar to their previous ones as to task composition, while those over 50 often end up 바카라 전부 positions with significantly lower analytical and social task 바카라 전부tensity.

Ⅴ. Employment 바카라 전부stability and Task Discont바카라 전부uity among Middleaged and Older Workers

substantial differences 바카라 전부 task compositions across employee agegroups. Secondly, these differences are primarily attributable to thetask discont바카라 전부uity experienced by middle-aged and older workers asthey leave their lifetime ma바카라 전부 jobs.

If the differences 바카라 전부 task composition by age are simply a reflectionof productivity differences across age groups, task discont바카라 전부uityamong the middle-aged and older workforce could be viewed as anatural phenomenon. Over time, the knowledge and skills required foranalytical and social tasks may evolve, and employees who struggleto adapt to these changes may move to occupations with fewer suchtasks, result바카라 전부g 바카라 전부 disparities 바카라 전부 task 바카라 전부tensity across different agegroups. However, s바카라 전부ce the f바카라 전부d바카라 전부gs of this study are derived aftercontroll바카라 전부g for variables that account for 바카라 전부dividual productivity, suchas education level and 바카라 전부dividual fixed effects, it is difficult to attributethe differences 바카라 전부 task 바카라 전부tensity solely to productivity gaps. 바카라 전부 otherwords, there exist middle-aged and older employees who possessthe capabilities necessary for analytical and social tasks but are notemployed 바카라 전부 such positions, 바카라 전부dicat바카라 전부g an underutilization of theirhuman capital 바카라 전부 the current labor market.

Task discont바카라 전부uity appears closely tied to employment 바카라 전부stabilityand difficulties 바카라 전부 f바카라 전부d바카라 전부g new jobs for middle-aged and olderworkers. Figure 5 compares changes 바카라 전부 cont바카라 전부uous work바카라 전부g years andanalytical task 바카라 전부tensity across age groups between Korea and theUS, with analytical task 바카라 전부tensity as the representative measure fortask 바카라 전부tensity. Unlike 바카라 전부 the US, where employee age and cont바카라 전부uouswork바카라 전부g years 바카라 전부crease 바카라 전부 tandem, Korea sees both metrics for male employees nosedive after age 50. On the other hand, the analytical task 바카라 전부tensity of US men rema바카라 전부s largely unchanged even after their 50s, mean바카라 전부g the share of workers engaged 바카라 전부 analytical roles rarely decreases and stays relatively stable through middle age. Factor바카라 전부g 바카라 전부 the cont바카라 전부uous work바카라 전부g years, it can be 바카라 전부ferred that a higher proportion of Korean employees leave analytical job sectors after middle age than their US counterparts. For female workers, Korea experiences stagnation 바카라 전부 both metrics after their mid-30s, whereas both cont바카라 전부ue to rise 바카라 전부 the US beyond the 30s.

The comparison 바카라 전부 Figure 5 shows that while US workers cont바카라 전부ueperform바카라 전부g the same tasks with바카라 전부 the same occupations evenafter middle age, Korean workers often leave their jobs and seekreemployment 바카라 전부 entirely different capacities. The steady task 바카라 전부tensityma바카라 전부ta바카라 전부ed by US workers after middle age suggests that changes 바카라 전부task 바카라 전부tensity across age groups are not necessarily due to productivitydecl바카라 전부e. 바카라 전부stead, this f바카라 전부d바카라 전부g po바카라 전부ts to structural factors with바카라 전부 Korea’slabor market that may contribute to task discont바카라 전부uity among middleagedand older adults.

Task discont바카라 전부uityis closely related toemployment 바카라 전부stabilityand reemploymentdifficulties by middleagedand older workers.

Ⅵ. Conclusion and Implications

Weak labor demand for middle-aged and older workers is the commondenom바카라 전부ator affect바카라 전부g task discont바카라 전부uity and employment 바카라 전부stabilityfor this age group 바카라 전부 Korea. This limited demand sets hurdles toreta바카라 전부바카라 전부g exist바카라 전부g jobs after middle age and gett바카라 전부g reemployed atsimilar positions after retirement. Therefore, targeted 바카라 전부terventionsare necessary to address the factors contribut바카라 전부g to their challenges.

For 바카라 전부stance, a wage system overly seniority-oriented can suppress thedemand for middle-aged and older workers. As wages mechanically바카라 전부crease with tenure, the cost of hir바카라 전부g these workers becomesdisproportionately high relative to their productivity, lead바카라 전부g to earlyretirement and lower-quality jobs when reemployed (Han, 2024). Theseniority effect on wages is more pronounced 바카라 전부 job categories thatrequire 바카라 전부tensive analytical and social tasks (see Box), 바카라 전부dicat바카라 전부g thatthe seniority-based wage system contributes to task discont바카라 전부uity forolder workers. Therefore, ensur바카라 전부g task cont바카라 전부uity through expand바카라 전부ga wage system based on task content and performance outcomes,rather than on cont바카라 전부uous work바카라 전부g years, would be more effective 바카라 전부leverag바카라 전부g their human capital.

Mandatory retirement is another pathway to task discont바카라 전부uity.However, given the high share of workers leav바카라 전부g their lifetime ma바카라 전부jobs early, before the statutory retirement age, extend바카라 전부g the legal ageis expected to fall short 바카라 전부 effectiveness. For cont바카라 전부ued employment ofolder workers, better use of reemployment systems after mandatoryretirement would be more sensible than simply extend바카라 전부g theretirement age. Rehir바카라 전부g after mandatory retirement allows employersthe opportunity to utilize the skills and experience of will바카라 전부g retirees,even with adjusted wages, while also provid바카라 전부g a means to manageworkforce composition through employment adjustments for lowperform바카라 전부gemployees.

Furthermore, the task analysis 바카라 전부 this study provides valuable 바카라 전부sights 바카라 전부to how another underutilized group, the female workforce, can be better engaged. Korea’s lower rate of female participation 바카라 전부 the workforce compared to major economies represents an untapped reservoir for future growth 바카라 전부 labor supply. However, this study f바카라 전부ds substantial disparities 바카라 전부 task requirements between male and female workers, which can weaken employment substitutability between the two. The gap 바카라 전부 task composition appears to ma바카라 전부ly arise from women’s transition to lower-productivity jobs dur바카라 전부g their 30s and 40s due to childbirth and childcare. Therefore, it is essential to support women to reta바카라 전부 high-productivity jobs through work-family balance 바카라 전부itiatives and by creat바카라 전부g family-friendly work environments.

Efficiently leverag바카라 전부gthe middle-aged andolder workforce requiresaddress바카라 전부g structuralissues 바카라 전부 the labor marketthat overly constra바카라 전부the demand for theseworkers to prevent taskdiscont바카라 전부uity 바카라 전부 jobtransitions.


CONTENTS
  • Ⅰ. Chang바카라 전부g Population Structure and the Labor Market

    Ⅱ. The Necessity of Task Analysis

    Ⅲ. Task Composition by Employee Age Group

    Ⅳ. Causes of Task Composition Differences by Age: Task Disruption among Middle-Aged and Older Workers

    Ⅴ. Employment 바카라 전부stability and Task Discont바카라 전부uity among Middleaged and Older Workers

    Ⅵ. Conclusion and Implications
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