The Korean Information Society Development Institute (KISDI, President Kwon Ho-yeol) recently published a report on KISDI Research Report (20-12), ‘A Study on Improving Labor Market Participation of Women with Career Break in ICT Field’.

In the information and communication industry, which constitutes the ICT industry, the level of female employment is very low, and the percentage of women decreases significantly as age increases, showing a significant difference from other industries. In order to encourage a new influx of women into the ICT industry and strengthen the job retention among existing female employees, it is important to empirically evaluate the impact and opportunity cost of events in each life cycle and to discuss policies based on the distinct characteristics of the industry.

In order to estimate the human capital loss caused by the interruption of women’s careers in the ICT industry, the report conducted its own fact-finding survey on women whose career had been interrupted and women with no career in the SW and ICT service industries in order to estimate the wage losses and analyze the factors influencing the time taken to regain employment. The main results of the research are as follows.

First, the wage losses of women due to career interruption in the ICT industry, unlike other industries, does not show a significant decrease upon reemployment after a career break due to marriage, pregnancy, childbirth, childcare, or care for other family members. Generally, it is known that there is a statistically significant decline in women’s wages (of about 20%) due to a career interruption in the Korean labor market. As a result of the analysis by industry in this study, no evidence was found to support the hypothesis that the wage level for women, upon returning to the labor market after experiencing a career interruption in the ICT industry, is statistically and significantly lower than that of women who have not experienced a career interruption with similar tendencies.

Second, the results of the analysis of factors affecting the time taken to regain employment of women whose career has been interrupted confirmed that the characteristics of the job (regular positions, length of service, etc.) at the time of career interruption in the ICT industry were decisive factors in the female re-employment selection process. In particular, it was found that the existence of a department that can represent the opinions of individuals or workers at the time of career interruption affects women’s chances of re-employment. This means that the special situation and job characteristics of the ICT industry are important factors in determining women's re-entry into the labor market, and that a policy that reflects the industry's special characteristic is important for women's participation and utilization of the labor market after a career break.

In addition, according to the fact-finding results of this study, 68% of 253 women with potential career interruption in the ICT industry (i.e. women who are considering a cessation of their income-earning activities for such reasons as marriage, pregnancy, childbirth, or childcare within the next three years) responded that they felt concerned about the interruption of their career. It was found that the main cause of concern was 'difficulty in returning to work'. Establishing successful cases of returning to the labor market after career interruption appeared to be an important factor in forming a virtuous cycle in female ICT employment that encourages women to enter the ICT labor market and maintain their positions.

Also, the main reasons for moving from the ICT industry to other industries are excessive workload, lifelong job stability, and male-centered organizational culture, etc. Hence, the labor environment and the inherent characteristics of the ICT industry may be a major factor in the departure of female workers.

Lastly, regarding the prevention of career interruptions and the provision of re-employment support for women in the ICT industry, policy demands to support the creation of a corporate environment conducive to a healthy work-life balance, expand childcare facilities such as workplace daycare centers, expand employment/startup services, and improve the quality of vocational and educational training programs, etc. have all been recognized.

According to the results of comprehensive research, the social cost of changing re-employment behavior and women leaving the ICT industry may be larger than the opportunity costs, such as wage losses due to career interruption.

This report presents discussions on policy support measures, based on the special characteristics of the ICT industry, designed to promote the reinsertion and participation of women in the labor market after career interruption, and proposes the following measures: ▲ operation of an ICT care community program; ▲ support for freelance cooperatives for women with an interrupted ICT career; ▲ reinforcement of the connection between career reformation and vocational training programs; ▲ and employment subsidies for women whose career in ICT professions has been interrupted.

Choi Ji-eun, an associate research fellow, said, “This study attempted to empirically analyze the opportunity cost of ICT women’s career interruptions, in terms of human capital loss upon any wage loss incurred, and in terms of the determinants of the length of time it takes for women to be re-employed. It is necessary to continue the discussion on effective support policies for women with career interruptions by revitalizing the research on women’s employment while taking into account the special characteristics of ICT the industry.”