Effect of Work-Family Balance Policy on Job Selection and Social Sustainability: The Case of South Korea

South Korea needs to actively implement work-family balance policies to increase both the low employment rate of women and the low total fertility rate. This study analyzes the quantitative benefits that the implementation of work-family balance policies provides to employees and employers. We conducted a choice experiment that asked 633 participants about their stated preferences for a hypothetical company with different work-family balance practices. The analysis was performed by using a hierarchical Bayesian model that considered preference heterogeneity according to the respondents’ characteristics. The results indicate that the availability of parental leave provides benefits equivalent to an increase of 5.80 million won in annual salary and that offering childcare in the workplace has an effect equivalent to an increase of 5.37 million won in annual salary. Further, low-income groups, women, the younger generation, and parents of preschool children are most sensitive to the policy. Finally, small and medium-sized enterprises are less desirable to work for than large companies, but the implementation of work-family balance policies could change this preference.