"Increase in Women in Their 30s Not Having Children Leads to More Active Economic Participation"

KDI Issue Analysis: Background and Implications of the Rising Economic Participation Rate of Women in Their 30s

The economic activity participation rate of women in their early 30s has significantly increased. This is due to a noticeable decrease in labor market withdrawal as the proportion of women without children has risen.

According to the KDI issue analysis on the "Background and Implications of the Increase in Economic Activity Participation Rate of Women in Their 30s" released on the 30th, the economic activity participation rate of women in their 30s, especially those born between 1988 and 1992 (early 30s), has risen. KDI analyzed that this is because the proportion of women with children among women in their early 30s has decreased, leading to fewer women leaving the labor market.

KDI compared the economic activity and childbearing status of women aged 30-34 born between 1988 and 1992 as of 2022 with those of the previous birth cohort born between 1978 and 1988 when they were aged 30-34 (in 2017). As a result, the economic activity participation rate of women in their early 30s was 75%, which is 8.8 percentage points higher than that of women in their late 30s at 66.2%, showing a significant increase in just five years.

A particularly notable difference appeared in the presence or absence of children. While about half (46.9%) of women in their late 30s already had children when they were 30-34 years old, the proportion of women with children in their early 30s dropped significantly to 32.3%. Especially, the proportion of women with two or more children decreased sharply from 22.9% to 13.6%.

The tendency for economic activity to be constrained by the presence of children has also weakened compared to the past. According to KDI estimates, among women born between 1983 and 1987, the probability of economic activity participation for women aged 30-34 with children was 36.4 percentage points lower than that of childless women of the same age group. However, in the cohort born between 1988 and 1992, the difference in economic activity participation probability between the two groups narrowed to 28.2 percentage points. The economic activity participation rate of women in their early 30s with children increased from 48.9% for those born between 1983 and 1987 to 54.9% for those born between 1988 and 1992. This reflects the impact of policies supporting work-family balance and increased paternal involvement in childcare.

However, it was analyzed that the decrease in the proportion of women with children itself had a greater impact on driving the economic activity participation rate of women. When KDI decomposed the factors behind the 8.8 percentage point increase in the economic activity participation rate of women aged 30-34, it found that 60% of the increase was explained by the decrease in the proportion of women with children, and about 40% by the expansion of economic activity participation among women with children. Ji-yeon Kim, Head of Trends at KDI’s Economic Outlook Office, stated, “Although there is a trend of increased economic activity participation among women with children, the main factor driving the rise in economic activity participation among women in their 30s is the increase in the proportion of childless women,” adding, “Conditions for economic activity among women with children need to be further improved.”

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