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Poverty Duration and Exit of the Working Elderly Poor: Implications for the Senior Job Program

  • Korea Social Policy Review
  • Abbr : KSPR
  • 2020, 27(2), pp.125-162
  • DOI : 10.17000/kspr.27.2.202006.125
  • Publisher : Korean Association of Social Policy
  • Research Area : Social Science > Sociology > Medical / Welfare / Social policy
  • Received : April 15, 2020
  • Accepted : June 15, 2020
  • Published : June 30, 2020

Ji, Eun Jeong 1

1한림대학교

Accredited

ABSTRACT

This study examines poverty duration and poverty exit of the working elderly poor to investigate the effectiveness of the senior job program utilized by the government as a method of workfare and poverty reduction policy. The analysis uses ten waves (2009– 2018) of the Korea Welfare Panel Study data using by life-time table and discrete time hazard analysis. According to the results, 76.1% of the elderly population experience poverty at least for one year during 10 years. It shows that employment is not a solution to lift old people out of poverty. In addition, the persistent poverty rate is 51.0% and among them, the chronically poor, whose average income per capita over time is below the poverty line, account for 59.4%. This index provides evidence that it is difficult for the elderly to exit poverty in the short term. Old people are not able to escape poverty even if they are working. It does not mean that old people cannot exit poverty due to a lack of work. Second, poverty duration of old people who participate in the senior job program is longer than that of the other elderly poor expecially unemployed old people. It indicates that contrary to government expectation, the program is limited in terms of alleviating the poverty rate. Third, even after controlling for other variables, there is a state dependency that the likelihood of exiting poverty decreases the longer a person has been poor. This poverty duration dependence may be rooted in the extremely low quality of jobs. Furthermore, unlike the government’s expectation, the senior job program cannot contribute to the exit the poverty due to low job quality, rather, it should endeavor to achieve the original goal of the program and ensure decent working conditions for older workers in the regular labor market.

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