The Evolution of Age-friendly Jobs in a Rapidly Ageing Economy

Korea’s labor force shift toward older, female, and more educated workers has been even more dramatic than that of the US in recent decades. This paper documents how Korean job characteristics vary by age and characterizes the “age-friendliness” of Korean employment from 2000 to 2020 by applying the Age-Friendliness Index (AFI) developed by Acemoglu, Mühlbach and Scott to Korean occupational data. The AFI measures job characteristics—such as physical demands and job autonomy—based on occupational descriptions and worker preferences. Our primary empirical findings are that the age-friendliness of Korean jobs grew more slowly than in the US, and that older Koreans were not the main beneficiaries of these jobs. Both findings reflect the demographic, labor market, and institutional differences between Korea and the US. Slow growth of AFI can be partially explained by labor market rigidities, the role of large firms in Korea, and the flattening of managerial structures.