Age-Friendly Jobs Are on the Rise in Korea, So Why Are So Many Still Left Behind?

In a landmark study from Seoul National University and Stanford University, released under the National Bureau of Economic Research (NBER), researchers Hyeongsuk Kim, Chulhee Lee, and Karen Eggleston take a hard look at how South Korea’s labor market is adjusting to one of the world’s most dramatic demographic transformations. Their working paper, “The Evolution of Age-Friendly Jobs in a Rapidly Ageing Economy”, uses the Age-Friendliness Index (AFI) developed by Acemoglu, Mühlbach, and Scott to evaluate whether South Korean jobs are becoming more suitable for older workers. While South Korea has among the highest employment rates for adults aged 65 and older in the OECD, the research suggests that this statistic masks deeper issues: most older Koreans are employed out of necessity, not because the jobs are designed with their needs in mind.

The AFI scores occupations based on nine non-wage characteristics, including physical intensity, schedule flexibility, autonomy, and meaningfulness. These are valued more by older workers, who are willing to trade off higher wages for better work conditions. The study finds that although 88% of Korean occupations improved their age-friendliness between 2000 and 2020, the average increase was modest, just 3.9% over two decades, significantly lower than the 7.9% gain in the U.S. during a comparable period. This is particularly surprising given that Korea’s aging population is growing faster than that of the United States.

Who’s Really Benefiting from Age-Friendly Jobs?

One of the study’s most important findings is that older workers, those who would most benefit from age-friendly positions, are often not the ones getting them. Instead, the gains are skewed toward women and college-educated younger workers. This mirrors global labor trends in some ways, but the Korean case is marked by particular disparities. Older, non-college-educated men remain stuck in physically demanding roles. The data reveal that 33.5% of Koreans over 62 report engaging in heavy physical activity at work, and only 21.5% say their jobs involve mostly sitting. These figures are strikingly higher than among younger workers and also exceed similar age groups in the U.S.

Compounding the issue is the lack of work flexibility. Only 6–8% of Koreans report being able to set their own schedules, compared to 54–65% of Americans. Telecommuting remains rare in Korea, and job autonomy is significantly lower, especially for those without higher education. All of this points to a labor market where the structure of employment has failed to catch up with demographic realities.

Big Firms, Small Progress

The influence of Korea’s corporate giants, known as chaebols, on this slow progress cannot be overstated. While large corporations offer better pay and benefits, they also operate within rigid frameworks shaped by strong labor laws and seniority-based wage systems. These structures discourage flexibility and limit job opportunities for older workers. Managerial roles, typically among the most age-friendly jobs, have been shrinking due to corporate “flattening,” where hierarchical roles are reduced in favor of leaner management. The study notes that when these managerial roles are excluded from calculations, the growth of age-friendly jobs becomes more noticeable, suggesting that the loss of such positions is actively holding back progress.

Moreover, Korea’s dual labor market, split between regular and non-regular workers, has exacerbated inequality. Job creation has been concentrated in small and medium-sized enterprises (SMEs), which tend to offer fewer benefits and poorer working conditions. These jobs are also less likely to be age-friendly, pushing many older Koreans into undesirable roles simply to make ends meet.

Women Respond More to Job Quality

Interestingly, the research shows that Korean women have responded more elastically to the rise in age-friendly jobs. This is largely due to rising educational attainment and a growing presence in the labor force. Since 2000, female employment rates have increased from 50% to over 61%. However, deep-rooted gender norms continue to saddle women with most household and caregiving responsibilities. A visual from the study shows that even in dual-earner households, women perform more than 75% of all housework.

Because of these constraints, Korean women, particularly those returning to the workforce after raising children, place high value on flexible, meaningful, and less physically intense work. Age-friendly jobs are therefore more attractive and accessible to them than to older men, who are often forced into physically demanding roles due to economic need and lower pension coverage.

Toward a More Inclusive Labor Market

The study provides compelling evidence that while Korean older workers desire less taxing, more autonomous jobs, these preferences are largely unmet in the current labor market. Regression analysis confirms that job satisfaction among workers aged 50 and above is significantly higher in occupations with higher AFI scores, even after accounting for wages and education levels. This validates the cross-cultural relevance of the AFI and underscores its utility in policymaking.

Despite this, Korea’s slow progress highlights the urgent need for reforms. Policy recommendations emerging from the study include strengthening pension systems to reduce the financial burden on elderly workers, promoting flexibility across both large firms and SMEs, and actively supporting the expansion of age-friendly jobs across all sectors, not just those traditionally seen as "safe" or "soft." Furthermore, the study calls for more research tailored to Korean contexts, including surveys that capture older workers’ willingness to pay for job amenities and more detailed data on productivity by age.

Ultimately, the research underscores that simply keeping older people employed isn’t enough. What matters is how and where they work. As South Korea continues to age rapidly, ensuring that its labor market evolves to offer dignified, sustainable, and fulfilling work for all ages is not just a policy choice, it’s an economic and moral imperative.