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Reemployment bonuses in Korea: Policy implications from reemployment bonus experiments of the USA and Japan's reemployment bonuses

Kim, Dong-Heon 1 Seung Yeol Yee 2

1동국대학교
2한국노동연구원

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ABSTRACT

In this paper we compare reemployment bonuses in the Employment Insurance Systems of Korea, Japan and the USA with the three basic components: the bonus amount, the qualification period, and the reemployment period. Based on this comparative analysis we try to suggest how to reform reemployment bonuses in Korea. Korea's reemployment bonuses are much more generous than those of three field experiments conducted in the USA in the 1980s. Also, at the introduction of the Employment Insurance System, Korea's reemployment bonuses was similar in generosity to those of Japan, but after the program change in 2004 the Korean program has been more generous than the Japanese program. This is because the program has been operated without explicitly considering the objective of reducing the UI expenditure costs. Therefore, when reforming the program, policy-makers should consider the objective of reducing the UI expenditure costs as well as enhancing early reemployment of the unemployed.

Citation status

* References for papers published after 2022 are currently being built.