• KDI Journal of Economic Policy
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• v.32 no.1
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• pp.27-49
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• 2010

This paper provides insight into some important features of the intergenerational resource allocation in Korea, before and after the financial crisis in 1997-98. Data sets of three periods before and after the financial crisis (1996, 2000, and 2005) were used to compare the results. This research particularly addresses two related issues: i) the generational effects of economic crisis, and ii) the capacity of age reallocation systems to spread economic risks across generations. The results show tremendous consumption smoothing and resource reallocation by age, during and after the financial crisis. Private education and private health consumption decreased for children between 1996 and 2000. However, the decrease in private education and private health consumption was mitigated by the increase in public consumption. It appears that the public sector did not only mitigate the adverse impact of the economic crisis on consumption, but it also reduced the widening disparity amongst generations. Within transfers, the public transfers for the elderly increased substantially as the private transfers decreased rapidly. Finally, there was a big increase in the asset-based reallocation of the elderly. The increase in asset-based reallocation was mainly due to an increase in asset income between 1996 and 2000, but it was almost entirely due to a decrease in saving (i.e. an increase in dissaving) between 2000 and 2005. This suggests that Korean elderly seemed to have some degree of supporting system during the crisis, even without sufficient pension benefits. The increased reliance on asset accumulation will be critical in the long-run in Korea, as public pension funds diminish due to population aging.

• Journal of Teachers' Pension
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• v.2
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• pp.103-129
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• 2017

본 연구는 사학연금 퇴직자 자료를 활용하여 공적연금 사각지대를 보완하기 위해 마련된 연계연금 선택자와 일시금 선택자간의 가입행동을 분석하였다. 분석결과에 따르면 남성이며, 연령이 높을수록, 재직기간과 소득수준이 높을수록 연계연금을 선택할 확률이 높아지는 특징을 지닌다. 첫째 퇴직자 중 직원인 경우 연계연금을 선택할 확률이 높아지는데, 초중고 및 대학교 교원의 경우, 연금수급을 위한 최소재직기간(2016년 이전 20년)을 충족하고 연금수급권을 확보하는 경향이 높다. 둘째, 여성의 경우 연계연금 보다 퇴직일시금을 선택하는 경향이 높은 것으로 나타난다. 셋째, 사학연금의 경우 남성에 비하여 여성의 가입비율이 월등히 높으나 직무와 학교급 별로 저임금-비정규직 등 취약한 지위에 놓인 여성이 남성에 비하여 연계연금 수급권을 확보하지 못하고 있다.

• 한국사회정책
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• v.25 no.4
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• pp.71-104
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• 2018

This paper adopts a distributive performance process model of in-work poverty based on labor markets, households, and welfare states and analyzes the 4-11 waves of the Korean Welfare Panel Study during 2008-15. Previous studies on in-work poverty have focused on the definitions and concepts of in-work poverty by analyzing employment and unemployment persistence and repetition dynamics, but rarely paid attention to institutional distributive performance. In this regard, this study preforms a stepwise analysis of labor markets, households, and welfare states as a process of income generation in labor markets, satisfaction of welfare needs and income pooling at households, and deduction of social security contribution and income tax as well as receipt of public transfer income at welfare states. Results of empirical analysis show that in-work poverty had been on increase during 2008-11, followed by a decrease between 2012-15. At labor market stages, full time status had the most prominent impact on in-work poverty process, while status by employment and contract type have generated a huge variation as well. At household stages, household work intensity and number of earners contributed to reduction of in-work poverty, but the relations did not seen to be straightforward. However, welfare state played little role in lifting employees out of in-work poverty. In terms of institutional distributive process, in-work poverty was prevalent in either household-welfare state stage or labor market-household-welfare stage. Non-vulnerable group in terms of in-risk poverty was around 80% of the sample during the period of analysis, the size of which has remained constant.

• Korean Journal of Social Welfare
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• v.56 no.2
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• pp.237-259
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• 2004

The public assistance scheme plays more important role in income maintenance for poor elders than the public pension does due to insufficient coverage of the public pension resulted from late introduction of it in Korea. However, only limited numbers of poor elders are financially protected by the public assistance contrary to the general perception that the elderly population most benefits from public aids. Based on data set of 2000 from the Korean Labor and Income Panel Study, this study analysed the size, composition and characteristics of poor elders excluded from the public assistance, and determinants of the elderly's participation in it. Findings of the study can be summarized as follows: (1) More than half of poor elders are excluded from the public assistance although their economic status is similar with that of recipients, which may cause income reversal between recipients and non-recipients. (2) It was identified that non-recipient poor elders especially those with same income level of recipients of the National Livelihood Guarantees(NLG) are actually in desperate need of public aids considering their serious financial conditions. (3) Participation in public assistance among the elderly is more affected by socio-demographic factors that reflect family conditions than by economic factors, which is mostly caused by the strict eligibility criteria of the public assistance that reinforces family duty of financial support for elderly relatives in Korea. Policy implications for more effective income security for poor elders include revising inappropriate eligibility criteria of the NLG concerning family obligations, expanding the coverage of the old age allowance for poor elders to near-poor elders, and providing work opportunities to non-recipient poor elders to supplement their income deficit.

• Management & Information Systems Review
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• v.37 no.3
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• pp.65-81
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• 2018

This study estimated the long-run and the short-run price and income elasticity of crude oil demand by using the ARDL model in Korea. First, the long-run cointegration relationship existed between crude oil demand and price or income in the ARDL-bounds tests. Second, the long-run own price, the cross price elasticity and the income elasticity were both statistically significant elastic and sensitive in the ARDL. Third, there was autocorrelation of the residuals, but no misspecification errors and heteroscedasticity, and then the residuals showed a normal distribution. And the CUSUM & CUSUMSQ tests showed that the coefficients were stable. Fourth, the short-run own price, the cross price elasticity and the income elasticity were both statistically significant elastic and sensitive in the ARDL-RECM. The ECM with the short-run dynamics showed rapid adjustments in the long-run equilibrium of oil demand after the economic crisis. In the short-run, the sensitivity of crude oil demand to price and income changes has moved in the same direction as the long-run case. Korea, depending too much on foreign crude oil, is vulnerable to the shocks of oil prices, so rising oil prices can certainly have a negative impact on Korea's trade balance. And the elasticity of long-run oil prices may help to control and manage Korea's oil demand. The government needs to strengthen monitoring of the country's policies and market trends related to crude oil, establish strategies to customize national policies and market conditions, and strengthen active market dominance efforts through pioneering new market and diversification.

• Korean Journal of Labor Studies
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• v.24 no.2
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• pp.247-291
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• 2018

This study investigates the employment structure and the social safety net experience of the subcontracting cleaning workers in Korea, who have been main targets of the labor outsourcing despite the necessity and permanence of their labour. This study specifically focuses on the fact that these subcontracting cleaning workers are mostly female and in their old age, and analyzes how the combination of their age, gender, and employment structure leads to the (mis)match with the Korean social security system. Case study with in-dept interview method has been conducted to the old-aged female subcontracting cleaning workers in Korea. The result of this study is as follows. It was the income insecurity that led them to (re)enter the labour market, and the cleaning work was the almost the only wage work they could do considering their age and gender. Cleaning workers are mostly employed in the subcontracting company, and thus their labour contracts depend on the business contract period between the original and subcontracting company. Consequently, their employment relationship is mostly insecure unless they are guaranteed employment succession through the collective agreement of trade union. Moreover, it has been discovered that the employment insecurity due to the indirect employment relationship led to the poor labour conditions, low wage, and the exclusion from the social safety net.

• Korean Journal of Social Welfare Studies
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• v.42 no.3
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• pp.291-327
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• 2011

The purpose of this study is to classify the type of retirement process among the mature-aged in Korea. The study used the panel data from Korean Labor Panel (year2~6) for the classification of retirement process through Optimal Matching and Cluster Analysis. Classification is made in 5 categories as 'peripheral-economically active', 'private-transfer dependent', 're-entering limited', 'securely exiting', 'exit-and-reentering'. First, "peripheral-economically active" is a group which frequently experienced job status change and work insecurity. Second, "private-transfer dependent" is a group in which private transfer is likely to be supplements income in the incidence of unemployment. Third, "re-entering limited" is a group in which the proportion of no financial support combined with the absence of any economic activity is the largest. Fourth, the type "Securely exit" is th group whose members switches over to non-economically active status with pension receipt. The last type is "exit-and-reenter" that the member are highly possible to reenter in the labor market and stay in long time regardless of with or without pension plan. To examine the inequality among the types of retirement process, the duration of each status is analyzed. First, in the situation of being non-economically active, the duration of status is maintain public pension receiving and duration stabile in "securely exit" group. For "private-transfer dependent" type, members are mostly dependent on private financial support and that duration of it is longest. Through the analysis of retirement process without under other financial supports, it is "securely-exiting" type for which the duration of full-time employment is longest. It appears that the duration of part-time employment is longest in "peripheral-economically active" type. And for the case of non-waged employment it is "exit-and-reenter" type. Finally, the redistribution policy based on life course perspective is necessary to prevent that the opportunity in the structure before retirement stage and the unfavorable position in labor market make worse disadvantage in retirement process and after that.