• Title/Summary/Keyword: Welfare Gap

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An Adverse Social Welfare Effect of Quadruply Gainful Trade

  • Stark, Oded;Kosiorowski, Grzegorz
    • East Asian Economic Review
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    • v.24 no.3
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    • pp.207-235
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    • 2020
  • Acknowledging that individuals dislike having low relative income renders trade less attractive when seen as a technology that integrates two economies by merging separate social spheres into one. We define a "trembling trade" as a situation in which gains from trade are less than losses in relative income, with the result that global social welfare is reduced. We show that a "trembling trade" can arise even when trade is more gainful in four ways: through trade the absolute income of everyone increases, the income gap in both economies is reduced, as is the income gap between the trading economies. However, trade brings populations, economies, or markets that were not previously connected closer together in social space. As a consequence, separate social spheres merge, and people's social space and their comparators are altered. Assuming that people like high (absolute) income and dislike low relative income, the aggregate increase in unhappiness caused by the trade-induced escalation in relative deprivation can result in a negative overall impact of trade on (utilitarian-measured) social welfare, if the absolute income gains are not large enough to mitigate the relative income losses.

A Comparative Study of the Welfare Policy for the Aged in Rural and Urban in China (중국 도시와 농촌의 노인복지정책에 관한 비교 연구)

  • Gao, Chun-Lan;Kim, Seon-Hee
    • Korean Journal of Human Ecology
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    • v.10 no.2
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    • pp.37-42
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    • 2007
  • The scale and the extent of a aging of population of a rural are more serious than those of a urban in China. However, the welfare policy and the service for the aged in the rural are inferior. China established the different systems of social welfare policy for the city and the rural and has administered it since the china was established. Owing to an open-door policy(opening of a reform) the gap between the two got more deeply distinguished. Accordingly. the striking difference is shown in a living environment and a quality of life of the cities and the rural. I made clear the difference of services for the aged in the rural and the urban examining daily lives, medical industry, recreation systems and so on and analyzing their sources. In addition, I proposed the ways to establish synthetic social welfare policy of the urban and the rural.

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International Outsourcing, Unemployment and Welfare: A Re-Examination

  • Choi, Jai-Young;Yu, Eden S.H.
    • East Asian Economic Review
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    • v.23 no.3
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    • pp.261-284
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    • 2019
  • This paper explores the ramifications of international outsourcing on unemployment, income distribution and welfare, which is an important but yet unresolved issue. Using the well-known Harris-Todaro (1970) model of sector-specific unemployment, it shows that the effects of outsourcing on employment, income-distribution and welfare depend on the sector in which the outsourcing occurs, whereby sectoral factor intensities, unemployment-outsourcing response and the dynamic stability condition play crucial roles. In particular, outsourcing in the manufacturing (primary) sector widens (narrows) income inequality by increasing (decreasing) the sectoral wage gap and raising (not affecting) the rental income of the capital owners in the economy. Moreover, outsourcing in the manufacturing (primary) sector can be welfare-decreasing (is always welfare-increasing) due to its negative (positive) employment effect mitigating (reinforcing) the primary gains from the outsourcing.

Proposed ICT-based New Normal Smart Care System Model to Close Health Gap for Older the Elderly

  • YOO, Chae-Hyun;SHIN, Seung-Jung
    • International journal of advanced smart convergence
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    • v.10 no.2
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    • pp.37-44
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    • 2021
  • At the time of entering the super-aged society, the health problem of the elderly is becoming more prominent due to the rapid digital era caused by COVID-19, but the gap between welfare budgets and welfare benefits according to regional characteristics is still not narrowed and there is a significant difference in emergency medical access. In response, this study proposes an ICT-based New Normal Smart Care System (NNSCS) to bridge the gap I n health and medical problems. This is an integrated system model that links the elderly themselves to health care, self-diagnosis, disease prediction and prevention, and emergency medical services. The purpose is to apply location-based technology and motion recognition technology under smartphones and smartwatches (wearable) environments to detect health care and risks, predict and diagnose diseases using health and medical big data, and minimize treatment latency. Through the New Normal Smart Care System (NNSCS), which links health care, prevention, and rapid emergency treatment with easy and simple access to health care for the elderly, it aims to minimize health gaps and solve health problems for the elderly.

A Quantitative Trade Model with Unemployment

  • Lee, Kyu Yub
    • East Asian Economic Review
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    • v.23 no.1
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    • pp.27-53
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    • 2019
  • I employ search-and-matching to a multi-country and multi-sector Ricardian model with input-output linkages, trade in intermediate goods, and sectoral heterogeneity, in order to quantify the welfare effects from tariff changes. The paper shows that labor market frictions can be a source of comparative advantage in the sense that better labor market conditions contribute to lower cost in production. Labor market frictions play a critical role in determining the probability of exporting goods to trading partners, and interact with bilateral trade share, price, expenditures, etc. Unemployment and changes in unemployment rates due to tariff reductions contribute welfare changes across countries, implying that welfare effects based on quantitative trade models with full-employment are likely to be biased. I confirm the biased welfare effects by revisiting Caliendo and Parro (2015), who conduct an analysis of the welfare effects from the NAFTA from 1993 to 2005. I show that the welfare gap between theirs and mine has a positive correlation with changes in observed unemployment rates across countries. With the constructed model, I further conduct counterfactual exercises by asking what would happen if China's tariffs remain unchanged from 2006 to 2015. It turns out that there are mild welfare effects to trading partners in the world trading system.

Exploring Welfare Discourse in Korea Based on M. Foucault's Power And Knowledge Relations (M. Foucault의 권력지식관계론에 기초한 한국의 복지담론 해석)

  • Seo, Jeonghoon
    • Korean Journal of Social Welfare
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    • v.67 no.4
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    • pp.79-101
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    • 2015
  • What is the role of welfare discourse? Michel Foucault suggests the power and knowledge relation that power in a particular society and period controls the society and members by creating knowledge affecting the formation of cognitive and normative systems. Having the formation of exclusions(constraint of cognition), and materiality and reality(normative system) as an analytical framework, this article attempts the exploration of welfare discourse analyses with public statements relating to welfare subjects of the four former Korean presidents. As a result, It is found that dominant epistemic system is formed by balancing welfare and growth and regarding jobs as the best welfare(the linkage of welfare-growth-employment), emphasizing individual economic responsibility and self-reliance, pursuing welfare selectivism, and excluding comprehensive welfare provisions. At the same time, it is observed that power is not always formulating systematic knowledge and that there is a gap between cognition and norm. While the Foucauldian discourse analysis provides a causal inference about low social welfare expenditure, excessive focus on the role of power as knowledge generator and infuser causes a question of how to accommodate contemporary changes into knowledge system.

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Welfare Impacts of Behavior-Based Price Discrimination with Asymmetric Firms

  • Chung, Hoe-Sang
    • Asia-Pacific Journal of Business
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    • v.11 no.1
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    • pp.17-26
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    • 2020
  • Purpose - This paper studies the welfare impacts of behavior-based price discrimination (BBPD) when firms are asymmetric in quality improvement costs. Design/methodology/approach - To this end, we consider a differentiated duopoly model with an inherited market share, where firms first make quality decisions and then compete in prices according to the pricing scheme, namely, uniform pricing or BBPD. Findings - We show that BBPD increases social welfare relative to uniform pricing if the firms' cost gap is large enough. This is because BBPD induces more consumers to buy a high-quality product than under uniform pricing, and because a low-cost firm's profit loss from BBPD decreases as the cost difference increases. Research implications or Originality - Our analysis offers policy implications for markets where BBPD raises antitrust concerns, and quality competition prevails.

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.

The determinants of Fiscal Sustainability of Welfare State (복지국가의 재정적 지속가능성 결정요인)

  • Ko, Hyejin
    • Korean Journal of Social Welfare Studies
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    • v.47 no.4
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    • pp.217-254
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    • 2016
  • The purpose of this study is comparing fiscal sustainability of 17 welfare states. Borrowed the concept of fiscal space to Ostry et al(2010) and Ghosh et al(2011), this study measures the fiscal sustainability in welfare states. Using data collected from 20 OECD countries from 1986 to 2013, this study attempts to evaluate the financial sustainability of each country. As a result, it is necessary that the appropriate level of tax burden is secured. Tax revenue is the funded basis for maintaining the welfare state, so increasing tax compliance to offset the negative impact of increasing welfare spending will promote social cohesion. In therms of tax structure, in accordance with the ability to pay principle, it is important to raise the equity between the source of taxation. Reducing the gap between labor and capital tax is required to achieve horizontal equity, It is also useful to utilize the financial base of the welfare state by broadening the tax base though a consumption tax. Improving the vertical equity can also make a positive contribution to the fiscal sustainability of the welfare state.