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.