The 2015 welfare reform of the National Basic Livelihood Security System in South Korea: Effects on economic outcomes

Jaehyun Nam and Hyungjohn Park

International Journal of Social Welfare, 2020, vol. 29, issue 3, 219-232

Abstract: In July 2015, South Korea’s National Basic Livelihood Security System (NBLSS) was reformed for the purposes of eliminating welfare blind spots and reducing poverty. The reform is expected to affect the recipients’ economic behaviours and choices. In this study, we used changes in benefits and eligibility for the NBLSS under the customised benefit system to identify the effects of the change in the NBLSS on a proposed set of economic outcomes – income, labour supply, consumption, savings, poverty reduction. To estimate the effects, we used data from the 10th–12th waves of the Korea Welfare Panel Study and employed a difference‐in‐differences framework integrated with the propensity scores. We found that the NBLSS helps the poor to reduce financial and material hardships through income and consumption increments, but that it does not provide disincentives to the recipients from participating in the labour market or from saving.

Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://doi.org/10.1111/ijsw.12416

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wly:injsow:v:29:y:2020:i:3:p:219-232

Access Statistics for this article

More articles in International Journal of Social Welfare from John Wiley & Sons
Bibliographic data for series maintained by Wiley Content Delivery ().