Analysis of Labor Market Activation Policy and Its Employment Outcomes: the Effects of Employment and Tailored Social Service Provision

Kirak Ryu

doi:10.17000/kspr.19.3.201209.149

This article aims to analyze main features of activation policy and compare major programmes in terms of their impact on employment performances in Korea. Since the introduction of National Basic Living Security Act in 2000, a series of activation policies have been in place for social assistance recipients, low-income employees, and youth unemployed by means of providing tailored employment and social services via in-depth counselling and case management. These activation policies carry both enabling and demanding elements: requiring programme participation in exchange for public assistance benefit receipts on the one hand, and providing various social services to remove barriers to employment through case management on the other hand. Therefore, it merits attention to analyze how various features of activation programmes affect employment outcomes, the effectiveness of delivery system and policy instruments as well. In analyzing employment outcomes of activation policy of which main characteristics lie in provision of employment and social services, this article points out the features and policy instruments of the activation policy that contribute to labor market entry of public assistance recipients and low income employees. In addition, it also delineates the determinants of exit from benefit receipts. Results from statistical analysis show that activation policy with intense employment service helps both benefit recipients and low income employees enter into the labor market at a faster rate. However, tailored social service provision enables social assistance recipients to exit from benefit receipts. These results suggest theoretical and policy relevant implication in regards to redesigning the delivery mechanisms and service instruments of activation policy.

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* 2021년 이후 발행 논문의 참고문헌은 현재 구축 중입니다.

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