• Title/Summary/Keyword: Poverty Effect

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Tax Incidence of Philippine Tax Reform: Poverty and Distributional Effect

  • DIZON, Ricardo Laurio
    • The Journal of Asian Finance, Economics and Business
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    • v.8 no.2
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    • pp.281-288
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    • 2021
  • The purpose of the study is to determine the poverty and distributional effects of the implementation of Tax Reform for Acceleration and Inclusion Law. The Computable General Equilibrium-Top Down Behavioral Microsimulation was used to obtain the effects of the tax reform on macroeconomic and microeconomic levels. Moreover, the Poverty Gap Index, Squared Poverty Gap Index, Foster, Greer, and Thorbecke Measures of Poverty, and Sen-Shorrocks-Thon Index were used to measure the poverty effect of the tax reform. Meanwhile, the Gini Coefficient and SST Gini Coefficient Index were used to measure the distributional effect of the tax reform. The results show that the implementation of the tax reform has resulted in a significant increase in household income and disposable income. Region IV has the highest estimated increase in household income. Meanwhile, Region IV remained to have the lowest household income. Further, the findings of this study suggest that the tax reform resulted in a significant decrease in the magnitude of poor and the number of poor in the Philippines. However, the result of the study also suggests that the effect of tax reform manifests no differences in terms of the poverty gap measured through the Foster, Greer, and Thorbecke poverty index due.

An Analysis of the Poverty Reduction Effect of Social Security Benefits in Korea (사회보장급여의 빈곤완화효과 분석)

  • Kim, Hwanjoon
    • Korean Journal of Social Welfare Studies
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    • v.48 no.3
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    • pp.5-28
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    • 2017
  • Using 2006~2015 Korean Welfare Panel Survey data, this study analyzed the poverty reduction effects of social security benefits. The results show that social security benefits have substantial impacts on reducing the poverty gap. National Basic Livelihood Security, public pensions, and Basic Pension have relatively larger poverty reduction effects. Other benefits such as disability benefits, workers' compensation unemployment insurance, and childcare subsidies have much smaller poverty impacts. Two determining factors of the poverty reduction effect are (1)the amount and (2)the poverty reduction efficiency of social security benefits. With the expansion of the social security system in recent years, the poverty reduction efficiency has decreased in general. Due to a greater increase in the amount of benefits, however, the poverty reduction effect has gradually increased. In order to increase the anti-poverty effect of social security, it is important to find ways to improve efficiency while minimizing the disadvantages of the selectivistic welfare benefits.

Impact of Education on Multidimensional Poverty Reduction at the Post-Poverty Alleviation Era in Xinjiang

  • Jian Qiu;Hongsen Wang;Ailida Aikerbayr
    • East Asian Economic Review
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    • v.27 no.3
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    • pp.243-269
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    • 2023
  • The multidimensional poverty index is an indicator system established for defining and evaluating poverty, to understand poverty in dimensions beyond just monetary scarcity. Based on income, education, health, living standards, and social dimensions, this article measures and analyzes the level of multidimensional poverty in Xinjiang using the AlkireFoster method, with cross-sectional data obtained from a 2022 survey. Probit model is constructed for regression analysis, further considering the impact of education on enhancing feasible capabilities and alleviating multidimensional poverty at the post-poverty alleviation era. The data shows that many people still face significant challenges from the perspective of multidimensional poverty; the decomposition results of each dimension show that education contributes more to the multidimensional poverty; the regression analysis results show that the higher the education level, the lower the multidimensional poverty; heterogeneity analysis revealed that the inhibitory effect of education on multidimensional poverty is greater for females than males, and the poverty reduction effect of education mainly concentrates on middle-aged and older individuals. This article is meaningful for exploring strategies to alleviate multidimensional poverty in ethnic minority regions in frontier areas in the new era, accelerating regional economic development, and achieving shared prosperity.

The Effect of Occurrence and Reoccurrence of Catastrophic Health Expenditure on Transition to Poverty and Persistence of Poverty in South Korea (재난적 의료비 발생과 재발생이 빈곤화와 빈곤지속에 미치는 영향)

  • Kim, Eunkyoung;Kwon, Soonman
    • Health Policy and Management
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    • v.26 no.3
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    • pp.172-184
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    • 2016
  • Background: The objective of this study was to examine the effect of occurrence and reoccurrence of catastrophic health expenditure (CHE) on transition to poverty and persistence of poverty in South Korea. Methods: The data of the year 2008-2011 from the Korea Health Panel were used. CHE was defined as the share of total health expenditure in a household out of a household's total income at various threshold levels (more than 5%, 10%, 15%, and 20%). The effect of catastrophic expenditure on transition to poverty and persistence of poverty was analyzed through multivariate logistic regression. Results: The shares of households facing CHE at various threshold levels have increased gradually with 37.7%, 21%, 13.1%, and 9.5% in 2011. Households facing CHE were more likely to experience transition to poverty at thresholds level of more than 5% and 20% in 2010 set. Households facing CHE seemed to experience persistence of poverty, but it was not statistically significant. About 40% of households facing CHE in 2009 encountered another shock of CHE in 2010. Households without CHE seemed to experience more transition to poverty and persistence of poverty, but it was not statistically significant. For household with multiple CHE, those with medical aid were more likely to experience transition to poverty with statistical significance, but the statistical significance disappeared in case of persistence of poverty. Conclusion: The Korean health system needs to be improved to serve as a social security net for addressing transition to poverty and persistence of poverty due to facing CHE.

The Effect of Poverty on Children's Health (빈곤이 아동의 건강에 미치는 영향)

  • Kwon, Eun-Sun;Ku, In-Hoe
    • Korean Journal of Social Welfare
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    • v.62 no.4
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    • pp.129-148
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    • 2010
  • This study analyzed the effect of poverty on children's health, using data from wave 1-5(2004-2008) lf the Seoul Panel Study of Children surveys(SPSC). The analysis results indicated that poverty has a negative effect on child health over time when controlling for potential variables that mediate the family income-child health association. There was also a strong cumulative effect of poverty that explains much of the strengthening association between the length of poverty and child health. The negative effect of poverty on child health could be enhanced through poor mother-child relationship and marital conflict. This finding suggests that programs to improve child health, by implication, will require family level interventions such as increasing income support and improving care-giving and family interaction.

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The Effect of Catastrophic Health Expenditure on the Transition to Poverty and the Persistence of Poverty in South Korea (과부담 의료비 지출이 빈곤화 및 빈곤 지속에 미치는 영향)

  • Song, Eun-Cheol;Shin, Young-Jeon
    • Journal of Preventive Medicine and Public Health
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    • v.43 no.5
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    • pp.423-435
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    • 2010
  • Objectives: The low benefit coverage rate of South Korea's health security system has been continually pointed out. A low benefit coverage rate inevitably causes catastrophic health expenditure, which can be the cause of the transition to poverty and the persistence of poverty. This study was conducted to ascertain the effect of catastrophic health expenditure on the transition to poverty and the persistence of poverty in South Korea. Methods: To determine the degree of social mobility, this study was conducted among the 6311 households that participated in the South Korea Welfare Panel Study in both 2006 and 2008. The effect of catastrophic health expenditure on the transition to poverty and the persistence of poverty in South Korea was assessed via multiple logistic regression analysis. Results: The poverty rate in South Korea was 21.6% in 2006 and 20.0% in 2008. 25.1 - 7.3% of the households are facing catastrophic health expenditure. Catastrophic health expenditure was found to affect the transition to poverty even after adjusting for the characteristics of the household and the head of the household, at the threshold of 28% or above. Conclusions: 25.1% of the households in this study were found to be currently facing catastrophic health expenditure, and it was determined that catastrophic health expenditure is a cause of transition to poverty. This result shows that South Korea's health security system is not an effective social safety net. As such, to prevent catastrophic health expenditure and transition to poverty, the benefit coverage of South Korea's health security system needs to the strengthened.

Effects of Poverty Status on Socio-Emotional Development in Childhood : Focused on Comparing the Effects of Proxy Variables and Poverty-Co-Factors (빈곤지위가 아동의 사회·정서발달에 미치는 영향 :빈곤대리변수와 빈곤동반 위험요소와의 비교를 중심으로)

  • Park, Hyun-sun
    • Journal of the Korean Society of Child Welfare
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    • no.26
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    • pp.113-137
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    • 2008
  • Present study investigated the effects of poverty and poverty-co-factors in childhood. The effect of poverty status was measured by needs-income ratio. It compared its effect on children's socio-emotional development with that of poverty proxy variables such as recipient of public assistance, financial stress, subjective perception about social class, residence in public housing. It also examined the effects of poverty-co-factors after poverty status were controlled. Results show that poverty status has a more consistent negative relationship with socio-emotional development than other proxy variables. However, the relationship between them disappeared after poverty-co-factors were controlled. Findings from the present study suggest that targeted efforts for decreasing poverty-co-factor risks should be made along with financial support.

A Panel Study on the Relationship between Poverty and Child Development (빈곤과 아동발달의 관계에 대한 종단 분석)

  • Ku, In-Hoe;Park, Hyun-Sun;Chung, Ick-Joong;Kim, Kwang-Hyuk
    • Korean Journal of Social Welfare
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    • v.61 no.1
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    • pp.57-79
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    • 2009
  • This study analyzes the effect of poverty on child development outcomes including academic achievement, self-esteem, depression/anxiety, attention problems, aggression, and delinquency. The poverty experiences among elementary school children are longitudinally observed during 3 years between the 4th grade and the 6th grade. When development outcomes are compared among persistently poor children, transitory poor children, and non-poor children, academic achievement is found to be significantly different. The analyses of the relationships between the poverty status and developmental trajectories show that academic achievement among non-poor children has improved over time, while the level of poor children's achievement has decreased. The result also shows that problematic behaviors such as attention problems, aggression, delinquency has improved over time among all the children. Yet, the gap between poor and non-poor children has not decreased. The multivariate analyses indicate that the effect of poverty remains statistically significant only for academic achievement after children's individual and familial characteristics are controlled. Past experiences of poverty in addition to the current poverty affect academic achievement and persistent poverty has a stronger effect than transitory poverty on academic achievement, although the findings are not consistent across all the estimated models.

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The Effect of Income Transfer on Poverty Rate (소득이전의 빈곤완화 및 빈곤이행 효과에 관한 연구)

  • Kim, Kyo-Sung
    • Korean Journal of Social Welfare
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    • v.48
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    • pp.113-149
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    • 2002
  • The primary purpose of this study is to analyze the decreasing effect of public and private income transfers on poverty rate. Two year data of Korean Labor and Income Panel Study (KLIPS, 1998, 1999) are used for the analysis, and 1/2 of median income and 1/3 of mean income are adopted to measure poverty rate. Although private income transfer contributes more to reduce the rate than the public transfer, the main effect for decreasing poverty rate is forced by the wage. Statistically significant variables that affect to the exit of poverty based on the logistic regression analysis are number of family members(-), wage(+), property income(+), social insurance benefit(+), and the transfer income(+). Therefore, the future policy should be more related with the active labor market policy for developing better human resources among the poor family.

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The Effect of Economic Growth and Urbanization on Poverty Reduction in Vietnam

  • NGUYEN, Huyen Thi Thanh;NGUYEN, Chau Van;NGUYEN, Cong Van
    • The Journal of Asian Finance, Economics and Business
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    • v.7 no.7
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    • pp.229-239
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    • 2020
  • This article aims to measure the impact of economic growth and urbanization on poverty reduction in Vietnam, and verify whether economic growth and urbanization will help reduce poverty rates. Data for this study are tabular data related to growth, urbanization and poverty at the provincial level for the period of nine years, from 2006 to 2014 provided by the Vietnam General Statistics Office and the Vietnam General Department of Customs. The level of economic growth and urbanization mentioned in the study is reflected in such indicators as GDP value, exports value, imports value, urbanization rate and employment rate. The authors used logistic regression models with fixed-effects and logistic regression models with random effects. With 5% confidence level tested by the Chi-Square test of Hausman trial with the fixed-effect model, research results show that: (1) factors with significant negative impact on the poverty rate include imports value, urbanization rate and, employment rate; (2) factors that do not affect the poverty rate include exports value and GDP value. Based on the research results, this study proposes a number of policy recommendations to help promote economic growth, to sustain the urbanization process, and to contribute directly and positively to poverty reduction in Vietnam.