The Effects of Depressive Symptoms on Work Activities and Welfare Exit of Welfare Recipients in Korea1

The purpose of this research is to examine the link between depressive symptoms of welfare recipients and their work activity and welfare exit using a secondary dataset, entitled the Korean Welfare Panel Study. In 2000, the National Basic Livelihood Security System (NBLSS) was introduced to (i) ensure a basic standard of living for households in poverty, and (ii) promote work activity and welfare exit of the recipients. A considerable body of literature has reported that the policy outcome of the NBLSS is not a success. However, the reason for the low success rate is unclear. In contrast to studies in the USA, few studies in Korea investigated the effect of depression on welfare‐to‐work transitions. To bridge the gap in the literature, we examine the association between depression, work activity, and welfare exit using a logistic regression analytic method. The analytic results show that the level of depression (total score on the Center for Epidemiological Studies Depression Scale) was negatively associated with welfare recipients’ work activity and welfare exit, suggesting that depressive symptoms may be a significant barrier to promoting economic self‐sufficiency. Implications of the study findings are further discussed.     

The Clash between Social Policy and Traditional Values: Unmet Welfare Needs Sustained by the Culture of Familism in South Korea

Drawing from a wider study of the ideas of poverty and inequality in South Korea, this paper reports on the lived experiences of disadvantaged South Koreans and their relationship to the National Basic Livelihood Security System (NBLSS), a flagship social assistance program aimed at addressing poverty and inequality. Utilizing a cultural approach to understanding and analysing policy responses to poverty, the impact of familism in the application of the NBLSS safety net is examined. Research data is presented through the testimonies, obtained through qualitative research interviews, of disadvantaged research participants and those who work with them, as well as policy‐makers' perspectives, revealing key flaws in the current NBLSS policy objectives. It is clearly evident that, by clinging to outdated Confucian conceptualizations of familial piety as a justification for highly selectivist access to what is no more than a subsistence level of financial support for poor people, the proposition of a poverty safety net is compromised and is widely missing its aim of reducing poverty and inequality in contemporary South Korea.     

Identifying and Explaining Different Poverty Trajectories Using a Group‐based Trajectory Analysis – A Case Study of South Korea

In this study, we propose a group‐based trajectory analysis to examine why and how people fall into and out of poverty despite spiralling public expenditure on anti‐poverty policies. By analyzing the poverty experiences of 1,001 low‐income households between 1999 and 2008 in Korea, we identify five groups based on their poverty trajectories: exiting, declining, slowly rising, rapidly rising and chronic. Household members in each group demonstrate heterogeneous labour market experiences, educational levels and demographic factors. The exiting group has a high proportion of full‐time workers, high school graduates, and younger and male‐headed households, whereas the chronic group has more part‐time workers, high school dropouts, and older and female‐headed households. Among the declining, slowly rising and rapidly rising groups, educational background, age and sex are factors that differentiate the poverty dynamics of household members. Lastly, a number of social policies for helping low‐income households to leave and stay out of poverty are proposed.     

Reverse Mortgage as an Income Stabilizer for the Elderly in Korea

This paper examines the features of reverse mortgages in Korea, comparing beneficiary and non‐beneficiary groups in relation to income security for elderly homeowners without sufficient income. In addition, this study estimates how much poverty rates would decrease if all elderly single and couple households joined the program. A reverse mortgage was implemented in 2007 in Korea as a government guaranteed scheme for elderly homeowners. Notwithstanding the contribution of the reverse mortgage program, many elderly homeowners do not utilize the system as a useful means to earn additional income. Given the high elderly poverty rate and incomplete social safety net in Korea, the program should be extended to supplement the insufficient income of elderly “house‐rich but cash‐poor” households. The paper first reviews reverse mortgage policy details. We then investigate key characteristics of the beneficiaries and compare beneficiaries and non‐beneficiaries based on nationwide survey data. Finally, we estimate the potential income‐raising effects of the program and draw implications of the income security policy in Korea and reconfiguration of the welfare state in a broader context.     

Impacts of off‐farm employment on welfare,food security and poverty: Evidence from rural Vietnam

How off‐farm employment can enhance welfare in terms of food consumption and poverty alleviation is a critical question facing many developing countries. This study addressed that question by pursuing two objectives: (i) to quantify the impact of off‐farm employment on rural households’ welfare, food security and poverty; and (ii) to examine the factors that affect their decision to work off‐farm. Using panel data, we estimated a difference‐in‐difference combined with a propensity score matching model. The findings show that off‐farm employment improves income, ensures food security and contributes to poverty alleviation. The results also show that age, marital status, education, labour, financial capital, land, location, market access and losses from natural disasters are significant contributing factors to the decision to participate in off‐farm employment. The findings suggest that to improve the welfare of rural households, the Vietnamese government should proceed with policies that enhance their opportunities for participation in off‐farm employment.     

Poverty and material deprivation among European workers in times of crisis

Many EU countries are faced with abysmal public debts and high unemployment, and may have to reduce their social expenditure and deregulate their labour market, which should lead to an increase in ‘working poverty’ (i.e., an increase in the number of working men and women who live in a low‐income household, or in a household that cannot afford certain goods and services considered essential for a decent life, respectively). However, working poverty remains an under‐analysed phenomenon in Europe. Moreover, the vast majority of existing definitions used in Europe are based on a relative income poverty line and the EU's official definition of ‘in‐work’, which raises concerns about the robustness of existing findings. This article first examines how the socioeconomic situation has evolved in seven EU Member States that have fared differently. In addition, the article examines whether the use of non‐monetary poverty indicators and of an encompassing definition of ‘working’ has an impact on the conclusions drawn. An attempt is made to identify the main macro‐level determinants of changes in ‘working poverty’ and to better understand their impact at the micro‐level.     

Societal shifts and changed patterns of poverty

Fritzell J, Ritakallio VM. Societal shifts and changed patterns of poverty Int J Soc Welfare 2010: ??: ??–??© 2010 The Author(s), Journal compilation © 2010 Blackwell Publishing Ltd and International Journal of Social Welfare. This article uses data from the Luxembourg Income Study to analyse cross‐national and cross‐temporal poverty risks in 11 Western countries. We show that poverty risks have tended to increase from the early 1980s to 2000. In line with what we would expect based on the welfare state literature, the Nordic countries tend to have the lowest poverty rates. However, the proportion of the national population with a market income below the poverty threshold has increased in all countries and the cross‐national variation in market income poverty is not apparently related to the type of welfare state regime. We perform a simulation analysis to test whether structural factors, that is, compositional differences in age, family and labour market behaviour, could account for the cross‐national variation found. Our results demonstrate the increasing importance of household labour market attachment for alleviating poverty risks, as well as for explaining the cross‐national variation in these risks.     

GAUGING NEW ZEALAND'S SUCCESS AT POVERTY REDUCTION IN THE NEW MILLENIUM

This paper presents the results of the New Zealand Poverty Measurement Project's analysis of the effects of the 1990s social reforms in New Zealand on the incidence and severity of poverty, and assesses the impact of five social and economic policies introduced by the Labour‐led coalition governments since 1999: New Zealand superannuation, income‐related rents on state houses, active labour market policies for an employment‐rich economy, the Primary Health Care Strategy and the planned income support policy to reduce child poverty. Superannuation is assessed as both adequate and sustainable, rents for state houses are found to be affordable, and GDP growth and employment have increased incrementally as unemployment and benefit numbers have decreased. The Primary Health Care Strategy is an innovative initiative that will increase affordable access to general practitioners, but it and the proposed child assistance initiatives are too new to be adequately assessed. Of the challenges that remain, policy priorities should centre on housing alternatives, including home ownership for low‐income households not in state houses; income support for poor households, particularly those with children; and multi‐sector development of education and training aimed at lifting economic and social capacity.     

The prevalence and composition of asset poverty in Canada: 1999, 2005, and 2012

A household is considered asset poor if its assets (financial assets or net worth, taken separately) are insufficient to maintain well‐being at a low‐income threshold for 3 months. We provide the first national‐level estimates of asset poverty for Canada, using the 1999, 2005, and 2012 cycles of the Survey of Financial Security, and juxtapose these estimates with income poverty. The analysis provides new insight into economic insecurity by showing that asset poverty rates are consistently two to three times higher than income poverty rates. In addition to the prevalence of asset poverty across socio‐demographic groups, we analyzed how the composition of the poor change over time. Age and geography shape the risk for asset poverty in distinct ways. We found that while education appears to play a comparable role in shaping both income poverty and asset poverty, immigration places Canadians at a relatively higher risk of income poverty but not asset poverty. Key Practitioner Message: ? Practitioners ought to consider assets as well as income in assessing economic vulnerability; ? Asset poverty levels are 2–3 times higher than income poverty levels; ? Certain groups (e.g., immigrants) may be income poor but maintain sufficient assets.     

The economic consequences of divorce in six OECD countries

This article uses longitudinal data to estimate the short‐ and medium‐term economic effects of divorce in the USA, the UK, Switzerland, Korea, Germany and Australia during the first decade of the 21st century. Based on the data collected during the 2000s, in all of the countries studied, divorce had, on average, negative effects on the equivalised household incomes of women. However, the extent and duration of the negative effects of divorce differed markedly between countries. In all of the countries, the effects of divorce on the equivalised household income of men were smaller than for women. Although, using the available data, it is not possible to definitely explain the differences between countries, the analysis presented in this article has demonstrated that the average economic effects of divorce, particularly for women, are heavily influenced by the social security system, the labour market, family models and the family law system of each country. While the social security system and institutional arrangements such as child support and spousal maintenance do influence women's post‐divorce economic outcomes, what is most important in explaining cross‐country differences is women's labour market earnings and the extent to which re‐partnering occurs.     

A New Kid in Town? Active Inclusion Elements in European Minimum Income Schemes

This article assesses the current variation in activation strategies directed towards able‐bodied persons of working age relying on a minimum income guarantee in 19 EU member states. First, we argue that the active inclusion notion developed by the European Commission in its Recommendation on the active inclusion of persons excluded from the labour market provides a useful tool to categorize current activation strategies towards minimum income protection (MIP) recipients. Consequently, we assess the empirical viability of active inclusion strategies in a fuzzy set ideal type analysis of purpose‐collected institutional data. We find that there are only few countries where the activation discourse has remained a dead letter. Most countries implement policy measures that aim to discourage benefit dependency among MIP recipients. Nevertheless, behind the realities of activation strategies towards MIP recipients seldom lies the notion of active inclusion as defined by the European Commission. Particularly, many countries focus predominantly on incentives to increase labour market participation rates of MIP recipients, rather than enabling measures.     

Effects of sharing the parental leave on pensioners’ poverty and gender inequality in old age: A simulation in IFSIM

Female old age poverty is affected by family policy reforms which are meant to promote gender equality when young. Using our in house agent based simulation model IFSIM we show that sharing equally the parental leave can increase or reduce poverty among elderly women depending on the macro and behavioural (i.e. labour supply) responses that the reform off-sets. In general, the reform can be good for highly educated women, who will have an incentive to work more full time thanks to their higher earnings, which can compensate any loss in household income due to the man's staying home. For lower educated however, work might not pay as much and a reduction in labour supply might actually ensue (e.g. to reduce childcare costs). This will reduce also their pension rights at retirement. Furthermore, keeping men at home might slow down economic growth, and consequently growth of income pension accounts will be lower. This effect, combined with lower pension contributions (due to reduced labour supply), might result in higher poverty rates for women with lower education, compared to a scenario where the woman takes the whole leave. Other policies, such as more subsidised child care, might be an alternative worth considering to reduce female poverty in old age more evenly across educational levels.     

Poverty, welfare problems and social exclusion

This article investigates whether, and to what degree, poverty is linked to other types of welfare problems and, in larger perspective, whether the situation can be understood in terms of social exclusion. Two different measures of poverty – income poverty and deprivation poverty – and 17 indicators of welfare problems were used in the analysis. It was shown that income poverty was rather weakly related to other types of welfare problems, i.e. the most commonly used measure of poverty seems to discriminate a section of the population that does not suffer from the kinds of problems we usually assume that poverty causes. Deprivation poverty, identifying those who most often had to forgo consumption of goods and services, did correlate strongly with other types of welfare problems. Hence, people living under poor conditions do suffer from welfare problems even though this section of the population is not always captured by income poverty measures. The final analysis showed that the types of welfare problems that were most likely to cluster were deprivation poverty, economic precariousness, unemployment, psychological strain and health problems. Whether these types of accumulated welfare problems, from a theoretical perspective, can be seen as indicators of social exclusion is more doubtful.     

Poverty,income inequality and externalised problem behaviours of children: an empirical study in Korea

The primary purpose of this study is to examine the effects of neighbourhood poverty and income inequality on children's externalised problem behaviours in Korea. For the analysis, we used the National Survey of Children and Youth data and employed a multilevel analysis method. The results show that income inequality level of a community is a significant factor in increasing children's externalised problem behaviours. When controlled for income inequality, poverty itself was not significantly related to the level of children's externalised problem behaviours. We provide social welfare practice and policy implications of the findings in the paper.     

Material hardship and depression among low‐income households in South Korea: Differences by household type

With the recent trend of growing poverty in South Korea, low‐income households, particularly elderly‐ and single‐headed households, are at high risk of experiencing material hardship and depression. However, less is known about the association between material hardship and depression by household type in Korea. Using data (N = 2,913) from the Korean Welfare Panel Study and employing several methodological approaches to address the omitted variables bias, this study examined: (i) the association between material hardship and depression among low‐income households, and (ii) whether the association differed by household type. We found that experiencing material hardship was associated with a higher likelihood of being depressed. In addition, we also found that the association between material hardship and depression differed by household type. The magnitude of the association was most pronounced in single‐ and elderly‐headed households. Policy implications to improve well‐being among low‐income households were discussed.     

Do economic growth and institutional quality reduce poverty and inequality in West Africa?

Over the past two decades, the West African region has experienced much faster economic growth than other parts of the world. However, despite this economic upturn, the region has continued to experience high levels of inequality and poverty, yet economic growth is considered to be one of the main drivers of poverty reduction. An interesting literature indicates that local conditions may limit the expected effects of economic growth on poverty and income inequality. In this study, we are interested in the role of institutional factors that have been largely ignored in explaining poverty reduction and inequality outcomes in this region. Thus, this study empirically examines the role of economic growth and institutional quality on inequality and poverty reduction in West Africa. Using data from the World Development Indicators (WDI), the International Country Risk Guide (ICRG) and the Standardized World Income Inequality Database (SWIID), our results show that economic growth remains a necessary condition for poverty reduction and that the overall improvement in the quality of institutions contributes significantly to reducing poverty and income inequality in the long term. This contribution is made in particular through the improvement of democratic institutions, the alleviation of bureaucratic constraints, the quality of the judicial and regulatory system, the control of corruption and the quality of government stability. Furthermore, we show that improvements in the judicial system, low levels of corruption and better bureaucratic quality happen to be prerequisites for economic growth to significantly reduce income inequality. These results therefore call on policy makers in the West African region to improve their institutional framework and especially these dimensions with a view to enabling the region citizens to improve their living conditions.     

The effects of income transfers on poverty reduction in people with disabilities in South Korea

Using a nationally representative sample dataset from the 2016 Korean Welfare Panel Study, we examined the anti‐poverty effects of income transfers in people with disabilities. Our findings indicate that in households with a person with a disability, income transfers decreased by 55.9% and 84.8% of the pre‐transfer poverty rate and poverty gap, respectively. Before income transfers, households with a person with a disability were 1.94 times more likely to be poor compared to those without a person with a disability. When income transfers were offered, the chance of being poor in the disability group was only 1.11 times higher than that in the non‐disability group. Findings from the aggregated data suggest that means‐tested income transfers were more effective in reducing poverty levels than social insurance or private income transfers. At the individual level, the provision of means‐tested programs was also more likely to decrease the likelihood of experiencing poverty than social insurance and private income transfers.     

Tensions and contradictions in Australian social policy reform: compulsory Income Management and the National Disability Insurance Scheme

This paper explores contemporary contradictions and tensions in Australian social policy principles and governmental practices that are being used to drive behavioural change, such as compulsory income management. By means of compulsory income management the Australian Government determines how certain categories of income support recipients can spend their payments through the practice of quarantining a proportion of that payment. In this process some groups in the community, particularly young unemployed people and Indigenous Australians, are being portrayed as requiring a paternalistic push in order to make responsible choices. The poverty experienced by some groups of income support recipients appears to be seen as a consequence of poor spending patterns rather than economic and social inequalities. By contrast, Australia's National Disability Insurance Scheme (NDIS) has been constructed as a person centred system of support that recognises the importance of both human agency and structural investment to expand personal choices and control. Here we look at the rationale guiding these developments to explore the tensions and contradictions in social policy more broadly, identifying what would be required if governments sought to promote greater autonomy, dignity and respect for people receiving income support payments in Australia.     

Unemployment and economic security for young adults in Finland,Norway and Sweden: From unemployment protection to poverty relief

In this study, we investigated if there has been a displacement in the type and coverage of welfare services available for young unemployed adults in Finland, Norway and Sweden over the last two decades. This question is important because a number of studies have argued that the generous unemployment benefits and extensive labour market intervention found in the Nordic welfare states shield young people from the most severe consequences of economic inactivity. In this article, we instead show that during this period, less generous means‐tested unemployment and social assistance benefits have become the most important form of income protection for young people. In evidence, earnings‐related unemployment benefits now cover only 10 per cent of unemployed Swedes and Finns and 45 per cent of unemployed Norwegians aged 24 years or younger. This development marks a significant change in our understanding of unemployment protection for young people in Nordic countries.     

Economic Segregation,Race, and Homicide*

Objective. Prior research assessing the association between structured inequality and homicides has produced inconsistent findings, particularly in regard to establishing an association between economic disadvantage and black homicide rates. In this study, we employ a measure of the spatial distribution of income, Jargowksy's (1996) economic segregation measure, to assess overall and race‐specific homicide rates. Methods. Using cross‐sectional Census data and Supplemental Homicide Report data across 166 Metropolitan Statistical Areas, the present analysis uses negative binomial regression models to examine the association between economic segregation and homicide rates. Results. We find that both economic segregation and absolute deprivation (i.e., the overall extent of economic disadvantage) are robust predictors of black, white, and overall homicide rates. However, an alternative measure of economic segregation, a measure capturing poverty concentration, was not found to be a significant predictor of black homicide rates. Conclusion. We suggest that further studies should consider the extent of isolation across the income continuum, instead of focusing solely on poverty concentration.