Effectiveness of South Korea’s Basic Pension System on Reducing Poverty and Income Inequality

Soojeong Hur; 박희란

The basic pension system is designed to provide a stable basis of income for the elderly by providing pensions and to enhance social welfare by supporting the stable life of the elderly. The basic pension system is a governmental plan which started in 2014, and the basic pension system substituted basic elderly pension system that started from 2008. Since the reason for the change of system stems from the requirement of substantial income basis for elderly, this study analyzed household survey to examine whether the basic pension system is fulfilling the need. As a result, this study found that the basic pension system has an effect on the decrease of poverty rate compared to the basic elderly pension system. Specific results showed that the basic pension system reduced poverty for an elderly who is older than 75 years old, but the gender difference between elderly is not found. The degree of reduced income gap due to the change of the pension system was significant for the elderly older than 75 years old, and also for the women. To promote the effect of poverty reduction through basic pension system, this study suggests applying the basic pension system differently by the conditions of elderly and guaranteeing additional income basis.

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REFERENCES (28)
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* 2021년 이후 발행 논문의 참고문헌은 현재 구축 중입니다.

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