Welfare Expansion without Inequality Reduction

Institutional Explanation of Old-Age Poverty in Korea

Dados Bibliográficos

ID2116375
AutoresYoung-Hwan Byun (0000-0003-4995-6532, Stockholm University, autor correspondente)
Ano2024
Volume53
Fascículo2
Páginas491-511
Data de publicação2024-04-01
Peer ReviewedSim
Open AccessSim
TipoARTICLE
PeriódicoJournal of Social Policy (JOURNAL)
Identificadores do periódicoISSN: 0047-2794 • E-ISSN: 1469-7823
EditoraCambridge University Press (CUP) (PUBLISHER)
DOI10.1017/s0047279422000460
OpenAlexW4293059084
IdiomaEN
Citações recebidas7
Referências citadas24

Old-age poverty in Korea remains exceptionally high among OECD countries despite a significant expansion in pension expenditure. This article presents an institutional explanation for such a puzzle. Using 'targeting within universalism' as the analytic framework, this study examines the institutional effects of pension models on old-age poverty in Korea. Firstly, comparative analysis finds that universal provision of pensions negatively affects old-age poverty independent of the expenditure size, identifying Korean pensions as the least universal among OECD countries. Secondly, institutional analysis of the Korean pension system explains why the expenditure growth left a large share of the elderly with no or a partial pension. Finally, microsimulation analysis examines alternative assistance pension models for their potential to alter poverty outcomes. Strikingly, universal models alleviate old-age poverty more cost-effectively than the extant targeting model, questioning the efficiency-based justification for low-income targeting. In particular, the universal floor model appears to be the most effective, allowing greater benefits to the poorer without a means test. Even for assistance benefits, universal models may better remedy poverty under such conditions as low take-up among the needy, prevalence of low-income incidence, and pro-rich distribution of extant social transfers

Demographic economics · Development economics · Economic growth · Economics · Extant taxon · Inequality · Microsimulation · Pension · Political science · Poverty · Poverty reduction · Public economics · Universalism · Welfare · Global Health Care Issues · Retirement, Disability, and Employment · Social Policy and Reform Studies