Abstract
South Korea faces significant regional inequality, with young adult workers increasingly concentrated in the Seoul metropolitan area despite government efforts to promote balanced regional development. This study investigates the factors influencing young adult workers' (aged 19-39) decisions to work in non-Seoul urban areas, addressing a critical challenge for regional sustainability and economic vitalization. Using a sample of 3,200 young wage workers stratified by age, gender, and region, we conduct two complementary experiments designed to inform evidence-based policy interventions.
First, we implement a discrete choice experiment (DCE) where participants make 16 binary choices between hypothetical job offers (8 in the general module and 8 in the Pohang-specific module). The experiment systematically varies workplace attributes across key dimensions: distance from Seoul (travel time), housing support policies, work flexibility (worktime and workplace flexibility), workplace culture, and regional amenities attributes (education, medical, commercial, transport, and leisure), along with annual income. Income levels are randomly drawn from 70-150% of each participant's current or expected salary to ensure realistic trade-offs. The Pohang-specific module features 8 choices with fixed locations (Seoul metropolitan area versus Pohang) and an additional industry sector attribute, enabling place-specific policy insights.
Second, we conduct a randomized information treatment experiment to test whether providing information about regional living conditions can shift young adult employment preferences. Participants are randomly assigned to view one of three 30-40 seconds long videos: factual housing cost comparisons between Seoul and regional cities (Treatment 1), an AI-generated conversational dialogue discussing regional quality of life and cost advantages (Treatment 2), or a placebo video about tourism (Control). We then measure changes in intentions to work in non-Seoul region areas, sector-specific willingness to work for regional public institutions and large corporations, and corrections in misperceptions about regional housing costs.
By incorporating specific policy attributes in the choice experiment, including various forms of housing support and work arrangements, this study enables pre-implementation evaluation of policy effectiveness. The experimental design allows us to calculate willingness-to-pay estimates for each attribute, revealing the implicit price young workers place on different job and location characteristics. Furthermore, our stratified sampling approach enables analysis of heterogeneous treatment effects across key demographic dimensions including current residence (metropolitan versus regional), prior regional experience, age cohorts, and employment status. This heterogeneity analysis is crucial for identifying which population segments are most responsive to different policy interventions, enabling more targeted and cost-effective policy design.
The study contributes to both academic literature and policy practice by providing causally identified estimates of young adult preferences for regional employment and testing scalable information interventions that could shift these preferences. By linking stated preferences to specific policy instruments, we generate actionable evidence for policymakers seeking to attract young talent to regional areas and promote more balanced spatial development in South Korea.