Dream - The birth rate in South Korea (Korea Selatan or Korsel) continues to decline every year, even though the economy of this ginseng country is very advanced.
Various ways have been done by the South Korean government to facilitate young generations to get married and have children, but it has not been successful yet.
Many factors contribute to the reluctance of young generations in South Korea to get married and have children. One of the biggest factors, according to a report released by the Korea Research Institute for Human Settlements (KRIHS), is the cost of housing.
The conclusion is drawn from the analysis of various economic factors and labor associated with the pattern of birth rates in South Korea.
Recorded, the birth rate tends to not change much when house prices are stable. Using a dynamic panel data model, researchers found a correlation between the total fertility rate - the number of children estimated to be born by a woman until the end of her childbearing years in line with the specific age-specific fertility rate - in a particular year and factors suspected to influence family planning.
This includes various figures from the previous year. Among them are house prices, rental prices, private education costs, economic growth, and unemployment rate.
The cost of living, including the cost of buying or renting a house, is the biggest factor that affects married couples in having their first, second, or third child, although the impact is slightly different. More specifically, researchers have found that a 1 percent increase in house prices in a year leads to a decrease in the total fertility rate by 0.00203, and a 1 percent increase in rental prices leads to a decrease of 0.00247.
The report stated that 30.4 percent of married couples' decisions to have their first child were due to housing costs, followed by the previous year's birth rate at 27.9 percent. For the second child, housing costs influenced 28.7 percent of family decisions, followed by the previous year's birth rate at 28.4 percent. The percentages for the third child were 27.5 percent and 26.1 percent respectively.
The influence of private education on family decisions increases significantly after the birth of the first child, the second child, and also the third child. This affects the couple's decision to have the first child by only 5.5 percent, but then doubles to 9.1 percent for the second child, and even increases to 14.3 percent for the third child.
The influence of women's participation rate in economic activities is also significant. Referring to how many women in the population work or want to work, it always has a high impact on the family's decision to have children. Starting from 16.5 percent when deciding to have the first child, then 15.9 percent and 15.5 percent when deciding to have the second and third child. These figures indicate that women's employment is an important factor that influences the decision of married couples to have children.
The KRIHS researchers said that one key to addressing the record low fertility rate in South Korea is to address housing costs.
"Government should take policies so that newlyweds who are facing financial difficulties can obtain a house without taking excessive loans," wrote the researcher. Source: Korea Herald
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