Contents
Family and Fertility Policies in OECD Countries : Effects and Limitations 1
Presentation outline 1
In 1980, countries with high female employment rates had relatively low fertility rates 2
By 2005, the countries with high female employment rates, also have the highest fertility rates 2
OECD countries have different objectives underlying policies that support the reconciliation of work and family life. 3
OECD countries have different objectives 3
Family policy tools 3
A continuum of care and employment supports, as, for example, in Scandinavia 4
Family spending in Denmark, Sweden and France is high and has a work-family focus. 4
Contributing to relatively high birth rates 5
and high maternal employment rates 5
With high formal childcare participation rates in France, Sweden and Denmark 6
,while reconciliation solutions are also found in working times 6
However, in Korea workplace practices do not foster work and family reconciliation 7
More gender equity in caring and working will also reduce labour supply concerns 7
To have both more employment and more children, Korea needs active social policies in a labour market with opportunities for all 8
Active social policies in a labour market with opportunities for all (contd.) 8
More information 9
FERTILITY TRENDS AND FAMILY FRIENDLY POLICY IN FRANCE 10
Abstract 11
R sum 11
1 Introduction 12
2 Fertility trends in France 12
2.1 The long term decrease of fertility and the baby-boom 12
2.2 France now exhibits one of the best result among developed countries in terms of fertility 13
2.3 Fertility has been growing for a decade in France, and appears now to be independent on the business cycle 14
2.4 Differences in fertility among social groups are vanishing 14
2.5 - In particular, taking into account the impact of the migration on fertility patterns of the immigrants tends to reduce the gap of fertility between immigrants and French-born women 15
2.6 The actual size of complete families is close to the ideal number of children, but an unstable job situation reduces the probability of extending the size of the family 16
2.7 The increasing fertility of thirty-year French women compensates the decreasing fertility of younger women 18
2.8 Taking into account changes in fertility timing could lead to expect the replacement of generations to be almost reached in the future 18
2.9 The most recent population forecasts, based on a 1.9 fertility ratio for the future, show a substantial reduction of the impact of ageing, especially on future trends of pension expenditures 19
3 French family friendly policy 19
3.1 France is one of the first European countries for cash benefits for families 19
3.2 The French family benefits system is actually generous and diversified 20
3.3 However, international comparisons are less favourable to France in the field of in-kind family benefits 21
3.4 Day-care services supply is also limited in France by the generalised access to nursery schools 22
3.5 Moreover, fiscal incentives to families lead to U curve of the transfers for children according to household income 22
3.6 Other family friendly mechanisms 24
4 Concluding remarks : lessons from the French experience in family friendly policy 25
4.1 Although there exist some likely fruitful researches in progress, there is no overarching economic study that establishes a clear link between current fertility trends and family policy in France, 25
4.2 - There exist some partial studies that provide an assessment of the impact on fertility of particular family policy measures 25
4.3 Some cross-country comparisons also suggest that the generous French family policy system leads to a higher fertility than in neighbour countries 26
4.4 Three final policy-oriented comments : non-financial issues, fertility of high-skilled women, trade-offs between social policies 26
References 28
Appendix 1. The main cash family benefits in France 29
Appendix 2. The 2004 reform of family benefits devoted to families with young children 31
Fertility and Family Policy in Australia 32
1. Introduction 33
2. Fertility Rates, Demographic Structure and Population Projections 34
2.1 Fertility trends 34
2.2 Australian fertility trends compared with those in other countries 36
2.3 The population age-structure 37
3. Implications of these trends 40
4. Macro-level explanations for low fertility rates 41
5. Australian family policies 43
5.1 Family Payments 44
5.2 Parenting Payment 45
5.3 Child care 46
5.4 Maternity Payment 47
5.5 Maternity and paternity leave 47
6. Views about having children 49
The desire for children 49
Current, ideal and expected family sizes 51
Perceived stability of preferences 54
Important considerations when thinking about having children 56
7. A closer look at the importance of partnerships 58
Difficulties in finding suitable partner: reasons 59
Changing partnership formation pathways 59
Instability of relationships 60
Links between relationship stability and fertility intentions 61
Influence of the partner s views 62
8. Conclusion 63
References 65
New Challenges of Fertility and Family Policies in Korea 69
1. Development of population policy in Korea 69
2. Changes in fertility and population growth 71
3. Causes of the low fertility 73
4. Responses to low fertility 76
5. Organizational set-up 78
6. Discussions and Conclusion 79
Reference 81
Pension policy in OECD countries 82
Agenda 82
Common challenges for pension policy 83
Direction of OECD pension reforms 83
Comparing pension systems 84
Gross replacement rate, average earner 84
Gross replacement rate, average earner 85
Preventing old-age poverty 85
Old-age poverty 86
Types of social pension 86
Tackling old-age poverty in Korea 87
Level of social pension in selected countries 87
Next steps for Korea 88
Contact information 88
PENSION REFORM: THE SWEDISH EXPERIENCE 89
Abstract 89
Introduction 90
Contents of the pension reform 90
Survivors pension in the Swedish system 92
Purpose of the pension reform 93
The reform process 95
Income security 96
The gender impact of pension reform 99
Information needs 102
References 104
Pension reform in Germany and the role of the statutory pension scheme in providing retirement benefits for workers in Germany 106
Opening remarks 106
Overview of the historical development of the pension scheme in Germany 106
The major pension reforms of 1992 107
The pension reforms of 2001: beginning of State support for the creation of a complementary retirement plan 108
Conception of the 2001 pension reforms 109
Effects of the primary-pillar reforms 109
Challenges for the statutory pension scheme in creating a complementary retirement plan 110
Current reform measures (2004-2006) 111
New system of taxing contributions and pension payments under the Retirement Income Law 112
An exception to the rules 114
Closing remarks 115
Old-age provision in Germany 117
Financial Indicators 2005: Revenues and Expenditures 118
Reforms of the German Pension Insurance 119
Effects on the contribution rate 120
Monthly Standard Pension 121
Pension Reform 2001 122
Importance of the statutory pension insurance 123
Effects of the Pension Reform 2004 124
Private Pension Schemes ( Riester-Rente ) 125
The pension information 126
The Riester plan 127
New Pension Adjustment Formula 2004 128
Current debate 129
Old age quotient 60, 65 and 67 130
Increase of the standard retirement age 131
Income Security of the National Pension in Korea 132
Introduction 132
Principles and Assumptions in Design of National Pension Scheme 133
Problems Revealed in Operating the NPS : Fallacies of Assumptions? 135
Reforms of the NPS and Their Controversial Process 138
Future Directions and Roles of the NPS in Income Security Systems 147
Conclusion 153
References 155
Issues in health financing and expenditure related to ageing and low fertility trends across OECD countries 156
Overview 156
Main consequences of ageing and low fertility for health and long-term care expenditures in many OECD countries, especially Korea 157
Ageing, longevity and non-ageing effects will affect expenditure 157
OECD projections of public health and long-term care spending 158
What can be done to meet the challenge? 159
Percentage of adult population with body mass index over 25 (overweight and obese) 159
Consumption of fruit and vegetables, OECD 160
Percentage of males and females smoking daily, OECD 160
How can extra health care services be financed and how can the cost be shared across the generations? 161
The need for additional funding of longterm care services in OECD and Korea 161
But how would extra long-term care services be financed and how would the cost be shared across generations? 162
Cost containment will be a critical issue for achieving affordable health and long-term care 163
Contact Details 163
Taking care of tomorrow 164
Section 1: Healthcare in the Netherlands 164
Section 2: A sustainable healthcare system 172
Part 3: Lessons offered by the Dutch perspective 184
References 186
The German Long-term Care System and Future Reform 187
1. Historical beginnings 187
2. Ageing society 188
3. The long-term care insurance in Germany 191
4. Taking stock after over 10 years of long-term care insurance 203
5. Reform in the Future 204
6. Conclusion 207
Selected Facts and Figures about Long-Term Care Insurance 208
Financing and expenditure structure of Korean Health Care System towards an Ageing Society 216
1. Korea as an ageing society 216
2. Overview of the Korean health care system 218
3. Financing and expenditure structure of Korean health care system: current status 219
4. Prospects for future health care expenditure in Korea 235
Housing Policies for Seniors in Sweden 239
Introduction 239
Present housing situation of the aged 239
Old Age Policy for the Elderly in Sweden an overview 241
Future Directions and Implications 246
References 248
Housing for Seniors in Japan: Policy Issues and Directions 250
1. Status of Elderly in Japan and Changes 250
2. Living Conditions of the Elderly 252
3. Measures for an Aging Society 262
4. Housing Policies for an Aged Society 265
HOUSING POLICIES FOR OLDER PEOPLE IN THE UNITED KINGDOM 280
INTRODUCTION 280
1. THE PRESENT HOUSING SYSTEM FOR OLDER 281
2. THE CHANGES IN HOUSING POLCIES FOR OLDER PEOPLE 289
3. THE POLICY PROCESS AND THE PUBLIC SECTOR 296
4. WHAT LESSONS CAN BE LEARNED FROM THE EXPERIENCES OF THE UK FOR SOUTH KOREA? 297
References 298
Appendix A reproduced with the permission of Housing Options 301
HOUSING POLICIES FOR THE ELDERLY IN KOREA 303
1. INTRODUCTION 304
2. SOCIO-ECONOMIC CONDITION OF THE ELDERLY 304
2.1 Rapid increase of population ageing 304
2.2 Ageing population according to region 305
2.3 Living arrangement of elderly 305
2.4 Elderly household tenure 308
2.5 Living condition of elderly household 309
2.6 Economic condition of the elderly 311
3. POLICY Related to elderly s residence 311
3.1 Policy for encouraging children with their elderly parent 311
3.1.1 Tax reduction program for co-residence of multi-generation 311
3.1.2 Providing of co-residential type of housing 311
3.1.3 Special provision of public housing for those who live with their elderly parents 312
3.2 Program to modify some facilities in newly constructed National rental housing for resident of elderly and disabled 313
3.3 Provision of welfare facilities guided by welfare law for elderly 314
4 Policy Issue for improving elderly housing condition 315
4.1 Recognizing importance of elderly s living condition 315
4.2 building specially designed housing for the elderly 316
4.3 strengthening local government s role for elderly 316
5. CONCLUSION 316
REFERENCES 317
제1세션 발표1 : 한국의 저출산 대비 가족정책의 발달 / Dr.Willem Adema 318
제1세션 발표2 : 프랑스의 출산경향 및 가족친화정책 / Laurent Caussat 320
제1세션 발표3 : 호주의 출산 및 가족정책의 현황과 과제 / Matthew Gray 323
제1세션 발표4 : 한국 출산?가족정책의 새로운 도전(요약) / 조남훈 326
제2세션 발표1 : Facing the future / Mark Pearson 329
제2세션 발표2 연금개혁 : 스웨덴의 경험 / Ann-Charlotte Stahlberg 332
제2세션 발표3 : Pension reform in Germany and the role of the statutory pension scheme in providing retirement benefits for workers in Germany / Jurgen Meierkord 335
제2세션 발표 4:국민연금의 소득보장에서의 역할과 향후발전방향에 대한 고찰 발전방향에 대한 고찰 / 김성숙 338
제3세션 발표1 : Facing the Future / Mr.Jeremy Hurst 341
제3세션 발표2 :Taking care of tomorrow In search of sustainable healthcare system / Mr.Frido Kraanen 343
제3세션 발표3 :The German Long-term Care System and Future Reform / Dr. Marthias von Schwanenfluge 346
제3세션 발표4 : 고령화사회 한국의 의료재원 및 지출 구조 / 정형선 348
제4세션 발표1:스웨덴의 주택정책 / Bengt Turne 352
영국의 노인 주거정책 / Prof. Anthea Tinke 356
제4세션 발표4 : 한국의 고령자주거정책의 현황과 정책이슈 / 박신영 359
일본의 고령자 주택정책 : 정책이슈와 방향 / Hiroto Izumi 363
FERTILITY TRENDS AND FAMILY FRIENDLY POLICY IN FRANCE 29
Table A. Legal family benefits in France 29
Table B. Young child care benefits (2003 and 2004) 31
Fertility and Family Policy in Australia 37
Table 1. Total Fertility Rate and projected population `change 2006-2050, selected countries 37
Table 2. Ideal number of children by age, Australia 49
Table 3. Total expected number of children by age and sex 53
Table 4. Proportion and ranking of factors considered important in having children, by gender 57
Table 5. Proportion of men and women who were living with a partner, 1986, 1996 and 2001 59
New Challenges of Fertility and Family Policies in Korea 70
Table 1. Comparison of TFR in Major OECD Countries 70
Table 2. Changes in TFR and Number of Births, 1960-2005 72
Table 3. Changes in Population Size and Structure, 1980~2050 72
Table 4. Ratio of the Contributed Factors to TFR Reduction, 1959~2004 73
Table 5. Attitude on Children of Married Women aged 15-49, 1991-2003 75
Table 6. Reasons for Un-necessity of Child among the Single, 2003 76
PENSION REFORM : THE SWEDISH EXPERIENCE 93
Table 1. Projections of the costs for ATP and the basic pension. Expenditures expressed as a percentage of the wage sum 93
Table 2. The ratio of present value of expected lifetime benefits/lifetime contributions (B/C) of women and the present value of expected lifetime benefits/lifetime contributions of men for five socioeconomic groups in the Swedish national pension prior to the 1998 reform 95
Table 3. Replacement rates for different cohorts and income levels. Average income in age 65-69 and 70-74 related to average income in age 60-64. Per cent 97
Table 4. Disposable income as a pensioner in per cent of her/his average disposable income between 60 and 64 98
Table 5. Disposable income as a pensioner in per cent of her/his average disposable income between 60 and 64. Different pension ages 98
Table 6. The gender ratio of annual own annuities in the new Swedish pension system 100
Table 7. Replacement rates for full career men and four typical women. Replacement rate is calculated as annual benefit as a per cent of final salary 100
Table 8. The outcome of typical women in per cent of full career men s 101
Table 9. The gender ratio of the replacement rate when unisex tables are used and when the probability of surviving is diversified according to sex, and with and without child credits 102
Income Security of the National Pension in Korea 135
Table 1 : Size and proportion of the insured exempted from contribution payment 135
Table 2 : BCR(Benefit Cost Ratio) by each generation and earnings stratum of the NPS at present 137
Table 3 : Contribution rates to fit the benefits given after exhaustion of the fund 137
Table 1.1: Key demographics for the Netherlands (2005) 164
Table 1.2: Dutch GDP 1970-2004 (USD billion; indexed values in brackets) and per capita income (USD; indexed values in brackets) 165
Table 1.3 Key figures for healthcare in the Netherlands (2004) 166
Table 2.1 Increase in expenditure further to population ageing in various European countries 174
Table 2.2: Effect of the individual components on annual growth in healthcare expenditure 175
Table 2.3: Healthcare costs: development over the coming 20 years 175
Table 2.4 Increase in risk solidarity in acute care and long-term care (applying current definition), 2006 to 2026 178
Table 1 and Chart 1. Change in Population Structure of Korea, 1960-2030 216
Table 2. Change in fertility rate 217
Table 3. Speed of Population Ageing by Country 217
Table 4. Trends in personal health expenditure per capita by age groups 236
Table 5. Projections on public health and long-term care spending for OECD countries, 2005-2050 237
HOUSING POLICIES FOR OLDER PEOPLE IN THE UNITED KINGDOM 281
Table 1 Percentage of total population aged 60 and over in 2006 and projections for 2050 281
Table 2 Percentage of population aged 80 and over as a percentage of all aged 60 and over in 2006 and projections for 2050 281
Table 3 Age and disability 282
Table 4 People aged 65 and over unable to manage certain tasks without help 283
Table 5 Potential support ratio+ in 2006 and projections for 2050 283
Table 6 Percentages of different ages 2004-2074 284
Table 7 Percentage of people aged 65+ from different ethnic groups 284
Table 8 Where people aged 65 and over live: comparing 1991 and 2001 284
Table 9 Percentage of elderly people co-resident with a child mid to late 1980s/early 1990s 285
Table 10 Opinion of older people on living arrangements for themselves when they become frail 1997 286
Table 11 People younger than 40 by their opinion on living arrangements for their parents when they become frail in selected European countries 1998 286
Table 12 Tenure by age of household 2003/4 GB Percentages 291
HOUSING POLICIES FOR THE ELDERLY IN KOREA 304
Table 1 past, present and future of percentage of population ages 65 and over 1960-2020 304
Table 2 the speed of ageing rate 305
Table 3 elderly population according to the city size in 2003 305
Table 4 Percentage of living arrangement of the elderly by sex, marital status and place of residence, 1980-2000 307
Table 5 Percentage of family types of the elderly in 2004 308
Table 6 Households by Tenure: 1970 to 2005 308
Table 7 Owner occupancy rate (%) of elderly household in 2000 according to their age and residence 309
Table 8 Owner occupancy rate (%) of household by single elderly and elderly couples and by region 309
Table 9 the housing type of elderly household 309
Table 10 living space of elderly households 310
Table 11 Housing quality trends in Korea: 1980 2000 310
Table 12 Average monthly income of the elderly in 2004 311
Table 13 The application rate of special provision of public housing in 2004 313
Table 14 the comparison between Korea and Japan 314
Table 15 the number of residents in residential homes according to the type of residential homes in 2005 315
Table 16 the residential situation of free-charge residential home (Dec 2005) 315
제4세션 발표4 : 한국의 고령자주거정책의 현황과 정책이슈 361
[표 14] 전체인구대비 고령인구 비율이 비슷한 시기 한일간의 시설 현황비교 361
[표 16] 2005 년 무료시설 입소자 현황 361
FERTILITY TRENDS AND FAMILY FRIENDLY POLICY IN FRANCE 13
Figure 1. Total period fertility ratio (1901 - 2004) 13
Figure 2. Total period fertility ratio in selected developed countries (2002) 13
Figure 3. Trends of monthly births and monthly job seekers 14
Figure 4. Evolution over time of the family size, broken down by social groups 15
Figure 5. Ideal number of children, in general and in the household s context (1998) 16
Figure 6. Actual average complete family size and average ideal number of children in the household s context (1998) 17
Figure 7. Actual complete family size and ideal number of children in the household s context (1998) 18
Figure 8. Sum of fertility rates by age, women aged 15-27, 28 + and total 19
Figure 9. Cash benefits for families as a share of GDP in the 15 first Member States of the European Union (2003) 20
Figure 10. Cash benefits for families broken down by categories (2005) 21
Figure 11. Total family benefits in selected European countries 22
Figure 12 Yearly overall financial support to families according to household primary income (for each child, all families, 2004) 23
Figure 13. Yearly overall financial support to families according to household primary income (for each child, families including at least one child aged under 3, 2004) 24
Figure 14. Employment rates of mothers of one child aged under 3 and of mothers of two children of whom one aged under 3 (1993-2004) 26
Figure 15. Total fertility ratio and female employment rate (1990 and 2000) 27
Fertility and Family Policy in Australia 34
Figure 1. Total fertility rate, Australia, 1921-2004 34
Figure 2. Total fertility rate, Australia, 2000-2004 35
Figure 3. Age-specific birth rates, Australia, 1921-2004 35
Figure 4. Age and sex structure of Australia's population, observed (1911, 1961, 2002) and projected (2051) 38
Figure 5. Proportion of population aged under 15 and aged 65 years or over (1901- 2004), and projected proportion (to 2100) 39
Figure 6. Family spending in cash, services and tax measures, percentage of GDP, 2001 48
Figure 7. Family spending in cash, services and tax measures, percentage of GDP, 1980-2001 48
Figure 8. Men: current, expected and preferred number of children 52
Figure 9. Women: current, expected and preferred number of children 52
Figure 10. Men at age 20 who wanted to have a child: number of children wanted now (2004) and then (at age 20) by current age 55
Figure 11. Women at age 20 who wanted to have a child: number of children wanted now (2004) and then (at age 20) by current age 55
Figure 12. Age-specific first marriage rate, women 60
Figure 1 : Ratio of beneficiaries of Public Income Security Programs among the elderly aged 65 and over(2005), in Korea 136
Figure 2 : Financial projection of the government new proposal 2006 compared to those in the existing scheme and the proposal 2003 142
Figure 3 : Comparison of estimated costs between 3 proposals (ratio to GDP) 144
Figure 4 : Trends of average life expectancy and remaining life expectancy 148
Figure 5 : Trends of Total Fertility Rate 149
Figure 6 : Trend and prospect of dependency ratio of the aged (1970~2050) 149
Taking care of tomorrow 166
Figure 1.1 Healthcare expenditure by sector (public insurance), 2006 166
Figure 1.2: System characteristics of the Health Insurance Act 167
Figure 1.3: Legislation in acute care 168
Figure 2.1: Sustainability in healthcare 172
Figure 2.2: Costs of public provisions by age group (x 1,000 per person) 173
Figure 2.3: Net contributors and net beneficiaries by age group 174
Figure 2.4 Adjusted Lorenz curves for 2006 and 2026, against the average costs (100%) 177
Figure 2.5 Fluctuation in collective expenditure (% points against GDP), 2006 to 2040 178
Figure 2.6 Effects on the budget deficit (above) and the national debt (below) if current arrangements remain unaltered (percentage of GDP) 179
Figure 2.7 Increase in required capacity (% of the working population) for three productivity scenarios 180
Figure 2.8 Cumulative percentage of men leaving the employment market, by age and year of birth 182
Figure 2.9 Percentage of adult life spent in retirement and in receipt of state pension 182
Chart 2. Korean Health Care System 218
Chart 3. Trends in Total Health Expenditure and its annual growth rates in Korea, 1983-2004 220
Chart 4. Change in health expenditure per capita, public and private, 1994 and 2004 220
Chart 5. Trends in total health expenditure as a share of GDP 221
Chart 6. Health expenditure per capita and total health expenditure as a share of GDP in OECD countries 221
Chart 7. Flows of money in the Korean health care system: 223
Chart 8. Trends in composition of total health care financing by sources 224
Chart 9. Trends in composition of total health expenditure by financing agents 225
Chart 10. Trends in composition of total health expenditure by providers 226
Chart 11. Trends in composition of total health expenditure by functions 227
Chart 12. Financing structure of different services 228
Chart 13. Service structure of different financing agents 230
Chart 14. Provider structure of different services 231
Chart 15. Service structure of different providers 232
Chart 16. Trends in service structure of hospital 233
Chart 17. Financing structure of different providers 234
Chart 18. Provider structure of different financing agents 235
Chart 19. Forecasts for total health expenditure in Korea 238
Figure 1 the trend of increase of population ageing and household by single elderly and couple only 18% 306