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KMID : 1001320070310010423
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Social Welfare Policy
2007 Volume.31 No. 1 p.423 ~ p.451
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Factors of Determination on the Social Welfare Expenditure of Local Government
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Park Go-Woon
Park Byung-Hyun
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Abstract
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The purpose of this study is to analyze the change of social welfare finance operations of local governments in Korea in the year 2005, which is when the "Decentralization Revenue Sharing System" was created and government programs were transferred to local governments. This decentralization has increased the responsibility of local governments through transferring of authority and financial responsibility of the central government to local governments and reinforces the autonomy of local governments. Hence, the social welfare responsibility of local governments which are under the influence of this decentralization has increased and these local governments must take charge as the major provider of social welfare services. The results are as follows. First, social welfare expenditure is influenced by local government types, rate of local economical development expenditure, rate of recipients, mayor’s belonging party, finance independent ratio, last year’s ratio of social welfare expenditure. Second, last year’s ratio of social security expenditure saw a positive impact on the ratio of social security expenditure. This result implies that incrementalism is a significant determinant to the budget of local governments. Third, there was not a good correlation with the welfare demands of local residents, such as the ratio of public assistant, and the ratio of social security expenditures. This implies that local governments are unable to react to the welfare demands of residents and they do not have the political structure for reacting to those demands.
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KEYWORD
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Social welfare expenditure, social welfare finence of Local government
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