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KMID : 1001320150420010239
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Social Welfare Policy
2015 Volume.42 No. 1 p.239 ~ p.264
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Divisions in Socioeconomic Status and Risk Responses of the Self-Employed in Korea
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Ahn Jong-Soon
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Abstract
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The instability of self-employment jobs in Korea has grown greatly and socioeconomic status of self-employed workers has been challenged seriously throughout the 2000s since a rapid collapse in the self-employment sector due to the credit crisis in 2003. It suggests strongly that social risks of the self-employed are growing bigger over the recent years. However, the literature has paid little attention to it. Therefore, this study sets out to explore the social risks for the self-employed focusing on job instability, social insurance and private insurance coverages. Also, it illuminates the characteristics of self-employed workers’ socioeconomic status showing the self-employed is consisted of very different socioeconomic subgroups like employer, own-account workers, family workers, dependent self-employed workers. Finally, this study shows how risk responses of the self-employed are differentiated according to their socioeconomic status through descriptive analyses and regression analysis using Korea Welfare Panel Study data (the 7th wave, 2012). The study finds that there are differentiated risk responses according to their socioeconomic status and the lower class is more likely to be exposed to very high levels of social risk. Overall, own-account workers including family workers are facing much high social risks compared to other subgroups, in that they are less likely to be neither covered by the social insurance and private insurance, nor to update their skills. The study suggests that risk response strategies or policies have to be developed in order to address the difference in risk responses by the subgroups’ different socioeconomic status and the class effects in social risk are taken into account.
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KEYWORD
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the self-employed, socioeconomic status, social risks, risk responses
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