• Monthly Korean Chicken
• /
• v.15 no.7
• /
• pp.134-135
• /
• 2009

근로장려세제 제도에 대해 아직 홍보가 많이 돼 있지 않아 이번호에서는 근로장려세제란 어떤 제도인지 알아보고자 한다.

• The Journal of the Korea Contents Association
• /
• v.17 no.8
• /
• pp.382-395
• /
• 2017

This study tries to analyze whether the Earned Income Tax Credit (EITC), which was modified in 2011, has the effect of work incentive. In this sense, by establishing the 8th Wave of Korea Welfare Panel Study (2013) and the 9th Wave (2014), Furthermore, in order to overcome the methodological limit, the results of two-party analysis method will be compared by firstly carrying out multiple regression analysis and then performing propensity score matching analysis. The 535 households out of 6,025 were selected. The following are the results of multiple digression analysis and propensity score matching analysis. First, there was no statistically meaningful relationship with regard to the perception of the EITC. Second, there was a statistically meaningful result in the reduction of working hours with regard to whether a household received labor incentive or not. The study found that the revised EITC is not providing incentives which stimulates the will to work.

• Journal of Labour Economics
• /
• v.41 no.3
• /
• pp.1-59
• /
• 2018

The Earned Income Tax Credit (EITC) is a policy that supports low-income households financially as well as provides an economic incentive to participate in the labor market. Thus, estimating the causal effect of the policy on the labor force participation rate of low-income households is critical for the policy evaluation. In this paper, we exploit the variation in the eligibility to the EITC and the size of the benefit over several reforms of the EITC in South Korea since 2008 and estimate the impact on the participation in the labor market. Using data from four major household surveys, we find that the results are mixed; in some samples and specifications, we find that the effect is positive and statistically significant, while it is insignificant in others. The estimated effect is more likely to be positive and significant when we restrict the sample to the period before 2014. It is an important topic of future research whether the EITC's effect gets weaker because it is extended to cover the self-employed and beneficiaries of the National Basic Livelihood Security.

• Proceedings of the Korean Society for Quality Management Conference
• /
• 2010.04a
• /
• pp.345-350
• /
• 2010

2009년부터 도입된 근로소득 장려세제(EITC)와 가장 밀접한 관계가 있을 것으로 예상되는 기초생활 보장제도를 고려하고 근로소득 장려세제의 수급요건에 적합한 수급 세대규모와 상관분석 등을 통해 영향 요소를 선정하고 영향 요소를 예측하여 향후 근로소득 장려세제의 수급 규모나 필요 예산을 예측할 수 있는 시스템을 개발하였다. 예측에는 시계열 분석과 사회제도 성장에 적합한 로지스틱곡선 등을 이용하였다. 본 연구에서 제안된 시스템은 향후 제도에 따른 사회적 영향 예측과 제도 개선에 필요한 의사결정을 전략적으로 지원할 수 있을 것으로 기대한다.

• KDI Journal of Economic Policy
• /
• v.30 no.1
• /
• pp.131-170
• /
• 2008

Korea's public assistance system, represented by NBLS(National Basic livelihood Security), has disclosed critical problems despite the rapid increase in its budget, such as decreasing work incentive and deepening welfare trap. These typical problems of classical welfare system have been commonly witnessed in many other advanced countries. Therefore a number of efforts have been exerted to correct these problems by transferring the existing welfare system into a welfare-to-work(or workfare) system, and the most common one of such efforts is introducing the EITC(Earned Income Tax Credit)-type programs. They have already been implemented in many countries such as the USA, the UK and France, also Korean government decided to launch EITC program in 2009. This paper aims to propose some measures to improve Korean EITC program. For this, an optimization problem is constructed from the government's viewpoint. Optimal EITC program is defined to be a solution to the problem - a combination of phase-in rate, phase-out rate, and maximum credit that maximizes labor supply increase under a exogenously given budget constraint. Using a mechanism design analysis, we derive and characterize the optimal EITC program. Analysis results implies that Korean EITC structure needs to be modified so that phase-in rate is larger than phase-out rate and the upper limit of phase-out range becomes larger. Comparative static analysis results show that the feature of the optimal EITC program is sensitive to the change of income distribution, suggesting that if beneficiaries are categorized into different income groups, then it is desirable to apply distinctive EITC programs to each group.

• Journal of Labour Economics
• /
• v.42 no.2
• /
• pp.1-35
• /
• 2019

This paper compares the effects of income transfer and wage subsidy in a simple general equilibrium model. The redistributive effects of both policies are smaller, the more intensive in low wage workers are the luxury goods production. Wage subsidy contributes more to employment and GDP relative to income subsidy, but its redistributive effects can be smaller depending on the elasticities of labor demand supply. More complete empirical analysis appears due on the effects of both policies in order to design an optimal mix of efficiency and equity.