The impact of the hope growing account program on participants’ economic well‐being in South Korea

In 2010, the Korean government introduced the Hope Growing Account (Hope) program. The Hope program combines elements of a social assistance scheme (monthly income grants) with matched funds for savings to encourage the working poor to increase income and build assets. This longitudinal study estimated changes in household economic well‐being among 895 low‐income households who participated in Hope between 2010 and 2012. Economic well‐being was measured by changes in household monthly income and income‐to‐needs ratio. The adjusted difference‐in‐differences estimation revealed that the impact of Hope varied over household income distributions: lower income households were more likely to increase their monthly earned income and income‐to‐needs ratio compared to demographically similar non‐participants, while higher income households were less likely to increase their income and income‐to‐needs ratio. We describe how future research is needed to better understand how the Hope program impacts household assets and behavioral changes in the long run.     

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.     

Economic distress and health: A fixed effects analysis of low‐income persons in Singapore

Using fixed effects regressions, this study examined the transactional effects of different types of economic status on the physical and mental health of low‐income persons in Singapore. Among the economic variables considered, unemployment and arrears had the most significant effects. This signals the physical and psychological distress of being out of work and possessing arrears while income is low. The insignificant effects of poor health on household earnings suggest possible earnings supplementation by other household members. The findings imply the fruitfulness of dually improving employment prospects and health, work activation that takes into consideration mental health effects, increasing affordability of health services in liberal welfare systems, improving mental bandwidth through reducing arrears accounts, and short lag time from application to receipt of assistance. These implications point to a larger question on health and welfare systems in an increasingly uncertain economic environment for households in poverty. Key Practitioner Message: ? Employment and health are inter‐related: employment assistance incorporating physical and mental health interventions and vice versa can be more effective than either alone; ? Compared with decreasing arrears amounts, reducing the number of arrears can more effectively relieve mental distress; ? Effects between economic distress and health materialise quickly; minimising the lag time between application and receipt of assistance will provide great relief.     

Household empowerment as the key to eradicate poverty incidence

The current study aimed to investigate how the household empowerment can potentially reduce the rural poverty incidence. The data were collected through multistage random sampling from the rural households of 24 villages in Southern Punjab, Pakistan. A total of 600 households were selected as sample pool. Face‐to‐face interviews with the household heads were conducted. The household empowerment was measured through an index that was adopted from Abrar‐ul‐haq (“An assessment of the role of household empowerment in alleviating poverty in Southern Punjab, Pakistan” (Ph.D. Dissertation), School of Economics, Finance and Banking, Universiti Utara Malaysia, 2017). The binary logit model was used to analyze the impact of household empowerment with other control variables on poverty incidence. The results of the current study confirm the negative nexus between household empowerment and poverty incidence of rural households as the study reported that the probabilities (odds ratio: 0.877) of being poor are reduced by increasing the empowerment (in every aspect, economically, politically, and socially) of the households, and the results are statistically significant at the 1% level of significance. Based on empirical results, this study suggests that household empowerment has significant potential to reduce poverty incidence in the rural areas of Southern Punjab, Pakistan.     

Heterogeneous impacts of provincial governance on household welfare in Vietnam

This study investigated the role of provincial governance in the growth of per capita income of Vietnamese households, using a balanced panel data set for the period 2012–2014. Although we found no evidence for the influence of provincial governance when a linear fixed‐effect regression estimator was used, the results from a fixed‐effect quantile regression estimator revealed that provincial governance has a positive effect on all groups (but not the poorest) and that the effect tends to be greater for better‐off households. In addition, we found that wage employment plays a larger role in the income growth of poorer households, whereas returns on education are greater for richer households. The findings suggest that a mean regression approach that looks only a t the role of explanatory variables on mean household welfare, and does not consider differences in the distribution of household welfare, may miss some heterogeneity that is of interest to policymakers. Key Practitioner Message: ? Using a quantile regression approach has allowed the current study to provide new insight into the role of household‐related factors in household welfare. ? Finding shows that good governance tends to provide greater benefits to richer households than to other groups in the population.     

Determinants of Household Insurance Coverage Among Low‐Income Families from Boston,Chicago, and San Antonio: Evidence from the Three‐City Study*

Objectives. In this article we examine correlates of health insurance coverage for low‐income households. Methods. Using data from the Welfare, Children, and Families Project (1999–2001), a sample of 2,402 low‐income families from Boston, Chicago, and San Antonio, we estimate two logistic regressions, one that predicts health insurance coverage for one focal child in each household and another that assesses the odds that all children in the household have coverage. Results. The children of poorly‐educated, immigrant, and Mexican‐origin parents are at an elevated risk of lacking insurance. These characteristics also increase the risk of incomplete household coverage. Mexican‐origin children and households are at particularly high risk of lacking complete coverage, a fact partially reflecting their residential concentration in states with high uninsurance rates, such as Texas. Conclusions. Serious holes in the health‐care safety net affect poor Americans differently based on their state of residence, race, ethnicity, and household structure.     

Making ends meet: perceptions of poverty in Sweden

During the era after the Second World War, Sweden has built a welfare system based on labor market participation and income maintenance. Low unemployment and decent wages are supposed to guarantee people a labor market income or income maintenance, which in turn should provide a proper standard for everyone. However, a rapid increase in unemployment and economic problems have made the future of the Swedish welfare state more uncertain than ever. These circumstances have, among other things, led to the suggestion that Sweden should abandon the income maintenance policy and create a social policy system with the more limited ambition of guaranteeing everyone a minimum income. In that case, one central question must be answered: what constitutes a decent minimum income in today's Sweden? Where should we draw the poverty line under which people will not be forced to live? These questions are central in the current debate. The consensual poverty line method is used in this article to derive a poverty line relevant for today's Sweden. The results shows that more than every fifth household has an income below the consensual poverty line. That is, they have an income that most Swedes would argue is too low to make ends meet. The level of the consensual poverty line was compared with the National Board of Health and Welfare's guidelines for social assistance. The consensual poverty line was shown to be more generous to small households and the norm for social assistance was more generous to larger households. Finally, the expenditure for guaranteeing all Swedish household a minimum income equal to the consensual poverty line was estimated: more than SEK 25 billion per year. The results in the article casts serious doubt on the ability of the Swedish welfare state to secure a decent income to all citizens.     

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.     

The role of social transfers in mitigating families with children from the economic impact of the COVID-19 pandemic

In this study, we investigated the household income of families with children. Our specific interest was the earned income losses during the COVID-19 pandemic, and how social transfers have mitigated those losses. We assessed the monthly income levels by comparing the information on the year prior to pandemic to income levels during COVID-19 pandemic. We found that the pandemic affected all studied subgroups of families with children, with the most negative economic influence in May 2020. In addition, our results indicate that in Finland the social transfers protected fairly well against the negative economic impacts of the pandemic among families with children, especially among vulnerable families (those with lowest income level prior COVID-19, with low parental education, single-parent families and families with non-Finnish-born parents). The information gained from this analysis can be useful in economic recovery during and after COVID-19 pandemic, and when preparing for future challenges.     

Introducing social insurance for long‐term care in Taiwan: Key issues

Nadash P, Shih Y.‐C. Introducing social insurance for long‐term care in Taiwan: Key issues Taiwan will shortly complete its comprehensive social safety net, which includes national health insurance, retirement security, and unemployment insurance, by introducing long‐term care (LTC) insurance – putting it ahead of the many countries that rely on a patchwork of policies to address the need for LTC. The program, to be implemented in 3 to 5 years, will cover all citizens on a primarily social insurance basis. The range of LTC policy options considered is discussed, particularly how to structure the program, how to finance and regulate it, and how to develop its inadequate LTC infrastructure and workforce. Particularly thorny issues include the choice of social insurance, the feasibility of cash benefits, and how to address Taiwan's heavy reliance on foreign workers. Taiwan's increasingly democratic character, along with high levels of public support for the program, creates significant pressure on politicians to deliver on their promises to implement LTC reform. Key Practitioner Message: ?Emphasizes the importance of policy learning from other environments; ?Highlights the need for a strong regulatory and provider infrastructure for delivering long‐term care services; ?Emphasizes the need for training, support, and appropriate regulation of the long‐term care workforce.     

The Poverty Situation in Indonesia: Challenges and Progress of the Marginalized Group

This paper focuses on Indonesian poverty alleviation programs. It examines the national poverty reduction programs of cash‐based support projects for the poorest of the poor and highly marginalized groups. Indonesia was the country hardest hit by the East Asian financial crisis of the late 1990s. In 2005, Indonesia began unconditional cash transfers (UCT) for the first time – giving cash money to the poorest, poor and near‐poor targeted households. As a result, the income of the poorest households receiving UCT increased by 1.3 times compared to that of non‐recipients. The UCT can be seen as a new benchmark for Indonesia as a mechanism of a “shockbreaker” for the poor affected by the crisis. In 2007, the government of Indonesia began a trial of the conditional cash transfer (CCT) program known as the Hopeful Family Program (Program Keluarga Harapan or PKH). The CCT program was provided to poor families with an allowance conditional on their attention to their children’s education and health. With this program, women in the community gained access to new resources, in the form of the additional cash. CCT is planned to be the basis of the development of a future social security system.     

Poverty of Disability Households and Antipoverty Policies in the United States and Korea

This study compares the income of households with a disabled member to that of households without a disabled member in the U.S. and Korea using secondary analyses. It also compares the income of different subgroups by the types, number, and onsets of disabilities. Finally, it examines the effects on poverty of various income sources, including means-tested cash benefits for disability households.     

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.     

Regulating the delivery of cash‐for‐care payments across Europe

The article aims to understand how governments across Europe have modified the regulation of the delivery of cash‐for‐care schemes (CfCs) to dependent older people since the beginning of the century. In our terminology, the regulation of the CfCs delivery defines the norms, rules, and practices that public actors adopt to manage how beneficiaries can use the benefits. To discuss the regulation of CfCs delivery, we employ an original framework that take three analytical dimensions into account: the degrees of freedom in benefits' utilization (“CfCs utilization” dimension), the provision of information/orientation/advices/counselling to older people and families (“professional support” dimension), and the relationship between the delivery of CfCs and the delivery of the other publicly funded long‐term care inputs (“care system” dimension). The analysis adopts a comparative perspective, looking at six countries—Italy, Austria, the Netherlands, France, Germany, and England. Among various findings, the main one consists in showing that there has been a shared and increased interest in consolidating the regulation of CfCs delivery. This trend has been mostly directed towards the new policy aim of strengthening the professional support, a goal underestimated in the past, when this dimension was not a major topic of both debate and practice concerning CfCs across Europe.     

Economic well‐being of low‐income single‐mother families following welfare reform in the USA

This study explored changes in net disposable income for low‐income single‐mother families before and after the 1996 welfare reform in the USA. Although many studies on welfare reform have focused on employment or total family income as a way to measure low‐income single‐mother families’ economic well‐being, little is known about their net income after expenses related to entering the workforce. This study analyzed net disposable income after tax deductions and childcare costs to provide a more accurate understanding of income changes using data from the Survey of Income and Program Participation conducted by the US Census Bureau. The results revealed that while low‐income single mothers were working more after welfare reform, their net disposable income decreased during this time because their earnings were low and offset by an increase in childcare costs and a decline in means‐tested benefits, including Temporary Assistance for Needy Families benefits. Key Practitioner Message: ● To understand effects of the 1996 welfare reform on low‐income families’ economic well‐being; ● To understand comprehensive income sources and work related expenses of low‐income families; ● To provide policy suggestions for comprehensive childcare subsidies to support low‐income single mothers’ employment.     

Argentina’s Emergency Family Income (IFE): An opportunity for women’s empowerment

This article provides empirical evidence regarding the impact of the Emergency Family Income (Ingreso Familiar de Emergencia – IFE), which was implemented in Argentina in 2020. Investigated is the impact of the IFE on women’s role in providing household income and on the distribution of roles within households, as a reflection of women’s empowerment. Drawing on various household surveys, the study compared those women eligible to receive the transfer with those who were not. A difference-in-differences (DID) methodology was used to measure the impact. Following the implementation of the IFE, women’s share of couple income and household income is found to have increased by some 8 per cent and 11 per cent, respectively, while the probability of women being solely responsible for household chores has fallen by 4 per cent.     

Little cash to large households: Cash transfers and children's care in disadvantaged families in Ghana

Social protection is widely considered to have a positive effect on children, including supporting improvements in nutritional, educational and health outcomes. Much less is known, however, about the impact of interventions on children's care. This article considers the impact of a social cash transfer targeted at poor households – Ghana's Livelihood Empowerment Against Poverty (LEAP) programme – on child well‐being, quality of care and preventing children's separation from their parents as perceived by programme and non‐programme beneficiaries in a context of vulnerability, large households and widespread informal kinship care. Findings suggest that cash transfers can improve both material and non‐material aspects of well‐being and contribute to the quality of care and have the potential to prevent children's separation from their parents. At the same time, not all children appear to benefit equally, with non‐biological children being disadvantaged. The combination of large household sizes with programme design and implementation challenges, including low transfer amounts, a cap on the maximum number of eligible household members and poor sensitization and follow‐up, undermine the positive role that cash transfers can play.     

Who Gets an Early Education? Family Income and the Enrollment of Three‐ to Five‐Year‐Olds from 1968 to 2000*

Objectives. Has inequality in access to early education been growing or lessening over time? Methods. Using the October Current Population Survey education supplement from 1968 to 2000, we look at three‐, four‐, and five‐year‐olds' enrollment in early education—including center‐based care, Head Start, nursery school, prekindergarten, and kindergarten. Results. Our analysis shows a strong link between family income and early education enrollment for three‐ and four‐year‐olds, especially when we compare the bottom two and the top two income groups. These differences remain even after controlling for a large variety of factors, including race/ethnicity, maternal employment, family structure, and parental education. Conclusions. Inequality in early education by income group varies by age of child: it is most pronounced for three‐year‐olds, who have been the least likely to benefit from public early childhood education programs; it has diminished in the past decade for four‐year‐olds, who have been increasingly likely to have access to public prekindergarten programs; and it has all but disappeared for the five‐year‐olds, who now largely attend public kindergarten. This pattern suggests a potentially important role for public policy in closing the gap in early education between children of different income groups.     

Financial incentives to work: A quasi‐experimental analysis of in‐work cash benefits for single mothers

This study examined the effectiveness of a voluntary welfare‐to‐work programme nationally implemented in Israel in 2003 and 2004. The programme included temporary in‐work benefits in the form of cash bonuses for single mothers who were receiving Income Support Benefits in 2003, when a far reaching change in the Income Support Scheme was implemented. The study focused on the effect of the bonuses on employment rate, earnings, earnings improvement and welfare exit. Based on administrative data and Propensity Score Matching, the evaluation included all single mothers who participated in the voluntary programme and a comparison group of eligible single mothers who did not participate. The programme had a positive long‐term effect on employment, earnings and earnings improvement among single mothers. However, it had no effect on their rate of exit from the Income Support Programme.     

Coverage versus generosity: Comparing eligibility and need assessment in six cash‐for‐care programmes

This paper investigates the potential trade‐offs between extension of coverage and adequate generosity in cash‐for‐care (CfC) programmes in six European countries (Austria, Germany, France, Great Britain, Italy, and Spain), which are characterised by different configurations of CfC programmes. Building on an empirical analysis of the eligibility rules, of the regulation applied to classify beneficiaries according to their level of dependency, and the ways CfC benefits are distributed among them, it becomes clear that these programmes differ substantially in terms of coverage and generosity. Such differences reflect the variety of ways by which universalism, selectivity, and adequacy are built up together throughout Europe.