A Study on the Trajectory and Determinants of Employment Quality in Mid-Aged in South Korea: Focusing on Individuals Born between 1959 and 1964

Background/Purpose

This study aims to examine the trajectories and determinants of Employment Quality (EQ) among middle-aged workers born between 1959 and 1964 in South Korea. Middle-aged people in Korea are described as the "Sandwich Generation" since they bear dual responsibilities of supporting aged parents and financially dependent children. Moreover, their employment is regarded as ensuring financial security in later life. However, the employment during middle age have remained unexplored, especially in terms of their EQ dimensions. The study examines a multidimensional approach to assess EQ with qualitative variable. By identifying EQ trajectories and their determinants, this study provides a comprehensive understanding of employment risks faced by middle-aged workers and provide practical implications for improving their EQ.

Methods

We analyzed pooled data derived from the 12^th to 26^th waves of the Korea Labor and Income Panel Survey (KLIPS), conducted between 2009 to 2023, and applies Group-Based Trajectory Modeling (GBTM) to identify distinct EQ trajectories for waged workers. The EQ index is comprised of employment stability, economic sustainability, developmental potential and compensation, collective organization, and interpersonal power relations, with scores calculated by the total values of these dimensions. Additionally, a Multinomial Logistic Regression analysis is conducted to investigate the demographic, socioeconomic, and human capital determinants of EQ trajectories.

Results

The EQ trajectory groups were named arbitrarily based on the mean score for 10 years and their defining characteristics. The analysis identifies five distinct EQ trajectories: (i) High-Stable, (ii) Middle-Stable, (iii) Middle-Exit, (iv) Low-Late Entry, and (v) Low-Exit. According to Multinomial Logistic Regression analysis results, workers in the low EQ groups, which exhibit declining employment quality (EQ) or early labor market exit, were more likely to possess fewer household assets (rrr=0.920. p<0.05) and fewer household income (rrr=0.261, p <0.001). Moreover, as subjective health status increased, the likelihood of belonging to the low EQ group decreased (rrr=0.658, p<0.05). Regarding educational attainment, compared to individuals with higher education (rrr=0.284. p<0.05) and with experiencing vocational training (rrr=0.119. p<0.05) were less likely to belong to lower EQ groups

Implications

The study suggests that policy measures are needed to strengthen employment security. First, considering the ongoing discussions on extending the retirement age, it is necessary to postpone the implementation age of the wage peak system or extend its duration. Secondly, tailored reemployment programs should be established to support middle-aged workers in maintaining continuous participation in the labor market by leveraging their careers and expertise. In particular, it is essential to improve access to vocational training and strengthen career transition support to help middle-aged workers adapt to changes in the labor market and secure stable employment opportunities. Thirdly, since better health status increases the likelihood of mid-aged workers to stay in the higher EQ group, it is important to support for flexible working arrangements and promote health-friendly workplaces. Lastly, given that economic vulnerability during middle age can lead to poverty in old age, it is important to enhance asset building by encouraging participation in retirement and private pension plans through improved policy measures.