Abstract

This paper examines the effect of a new maximum work hour restriction introduced in South Korea in 2018 that limited maximum working hours from 68 h/week to 52 h/week. I use difference-in-differences analysis with continuous treatment measuring the prevalence of those working longer than 52 h/week prior to the policy change across industry-occupation-education groups. I find that the policy reduces work hours while increasing monthly earnings and hourly wages for male full-time workers. However, I find that the policy does not significantly affect total work hours, total employment, and total worker pay at the industry-occupation-education group level.

Abstract

This paper examines the effect of a positive housing wealth shock on married couples' decisions on labor supply, fertility, and education spending by exploiting regional housing price variation from 2003 to 2008 in South Korea. My difference-in-differences and triple difference estimation results show generally weaker housing wealth effects than those in literature: no housing wealth effect on labor force participation, employment, and fertility, and a net positive housing wealth effect on education spending for children. Further analysis suggests that strict regulations on Loan-To-Value (LTV) ratio and Debt-To-Income (DTI) ratio during the period of housing appreciation may prevent significant housing wealth effects from arising as many homeowners have little access to home equity loans under the regulations.