Is parental leave equitable for all? Differences in career continuity by labour market status: evidence from South Korea

This study aimed to examine the unequal effects of South Korea’s universal parental leave system on women’s career continuity according to labour market status, using the concept of ‘policy refraction’. Using data from the Survey on the Economic Activities of Career-break Women (SEACW) (2016, 2019, 2022), we analysed 2,204 women aged 25–54. We applied generalized structural equation modelling (GSEM) to examine structured patterns of association between labour market status and career continuity, mediated by parental leave utilization. Utilizing parental leave was a key positive mechanism for career continuity. However, policy refraction emerged, with its use concentrated among those in advantageous positions (public institutions, standard workers) while workers in small firms show substantially lower utilization rates. Notably, public institution employees enjoyed a ‘Double Advantage’, whereas small-firm workers showed a negative indirect association through lower parental leave utilization. The parental leave system may function as a mechanism that mediates and deepens existing inequalities within a segmented labour market rather than mitigating them. Tailored policy interventions are required to enhance utilization of the system for vulnerable groups, such as small firm workers, to ensure its substantive universality.