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Policy Tasks for Activation-based Unemployment Assistance

Byung-Hee Lee 1

1한국노동연구원

Accredited

ABSTRACT

The low-wage disadvantaged faces a high level risk of falling in the household poverty in the case of unemployment. They can claim little or no financial support because a considerable level of employees is not registered for mandatory employment insurance or there is no unemployment assistance scheme. International comparison shows that Korea records the low level of beneficiary rates for dedicated unemployment compensation. This paper suggests the introduction of supplementary employment safety net. The low-wage workers in Korea experiences a very low level of long-term unemployment, but has little probabilities of escaping the low-pay traps. Considering these characteristics of low-wage workers in Korea, this paper recommends the introducing of activation-based unemployment assistance. Measures to facilitate gainful employment and encourage upward mobility to better paid and more stable jobs is likely to more helpful to those who are excluded from both the protection of employment insurance and public assistance. Policies for enlarging the public employment service, restructuring the public work programs, providing income support contingent on participation in activation programs, and improving the low-wage market conditions are needed.

Citation status

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