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Impact of social assistance on income and consumption: An analysis of the National Basic Livelihood Security System in South Korea

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  • Seog-Min Lee

Abstract

This study evaluates how the National Basic Livelihood Security system (NBLS hereafter), the basis of the South Korean welfare system, affects household income and consumption. NBLS, established in 2000 after the Asian financial crisis of 1997, targets all social strata by supplementing low-income earners and providing a welfare-to-work program. By adopting the regression discontinuity design approach and income- and consumption-based measures in accordance with the main features of NBLS, the presented evaluation results allow us to find that recipients show similar levels of market income, NBLS income (the sum of market income and NBLS pay), disposable income, and consumption expenditure. By using RDD, this study thus concludes that NBLS affects the income and consumption of recipients in Korea.

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  • Seog-Min Lee, 2015. "Impact of social assistance on income and consumption: An analysis of the National Basic Livelihood Security System in South Korea," International Review of Public Administration, Taylor & Francis Journals, vol. 20(2), pages 208-223, April.
    • Handle: RePEc:taf:rrpaxx:v:20:y:2015:i:2:p:208-223
    DOI: 10.1080/12294659.2015.1013520
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