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The Valuation and Redistribution Effect of the Korea National Pension

  • Yuh, Yoonkyung
  • Yang, Jaehwan
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    This paper evaluates the Korea National Pension (KNP) and investigates its redistribution effects. The educational level is used as a proxy for mortality and various socioeconomic factors are considered. The financial and utility-based analyses reveal strong progressive redistribution with income level. Also, the utility-based analysis indicates significant progressive redistribution with non-pension asset level but no significant redistribution with the educational level. Generally, the KNP is extremely valuable and its value seems higher with a pre-existing private annuity especially for the poor. Finally, when people are assumed to spend at least the minimum consumption level, it becomes more beneficial.

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    File URL: http://hermes-ir.lib.hit-u.ac.jp/rs/bitstream/10086/19215/1/HJeco0520101130.pdf
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    Article provided by Hitotsubashi University in its journal Hitotsubashi Journal of Economics.

    Volume (Year): 52 (2011)
    Issue (Month): 1 (June)
    Pages: 113-142

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    Handle: RePEc:hit:hitjec:v:52:y:2011:i:1:p:113-142
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