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The effects of the National Basic Livelihood Security System on income and consumption

  • Korean Society and Public Administration
  • Abbr : KSPA
  • 2011, 21(4), pp.175-213
  • Publisher : Seoul Association For Public Administration
  • Research Area : Social Science > Public Administration

박상현 1 최하정 1

1고려대학교

Accredited

ABSTRACT

The purpose of this study is to evaluate whether the National Basic Livelihood Security System (NBLSS) guarantee the minimum standard of living or not by analyzing how it has an effect on income and consumption. Matched Double Difference Analysis is used as a research method to compare the changes of income and consumption between recipients, the experimental group, and non-recipients, the control group. The main findings are as follow. First, the reduction effect of earned income can be seen in the both cases of the new and existing recipients comparing to the control group. Secondly, the amount of income and consumption of recipients increased without considering non-recipients. However, when it comes to compare with non-recipients which has a similar features to recipients, the effects of income and consumption growth can be hardly found. Lastly, the amount of consumption spending of recipients is lower than non-recipients on the more detailed expenditure categories. Based on these findings, this study argues that the NBLSA cannot guarantee the minimum standard of living of recipients. Therefore, it is essential that increasing the minimum cost of living to improve the quality of life to guarantee the minimum standard of living of recipients. In addition, the benefit system should also be changed for recipients who actually have work capability to support the economic rehabilitation by labor.

Citation status

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