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KMID : 1124020050210010177
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Korean Social Security Studies
2005 Volume.21 No. 1 p.177 ~ p.200
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A Study on effective incidence of the transportation fee reduction/exemption program for Socially Vulnerable Groups
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Gho Gyeong-Hoan
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Abstract
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Since the late 198Os, the transportation fee reduction/exemption program has been adopted for the elderly, the disabled, and veterans in Korea. It seems to be meaningful to analyze the effective incidence of losses imposed on the transportation establishments due to the transportation fee reduction/exemption program, after which it has been maintained as long as ten years. In fact, the losses of transportation establishments have increased with continuous increase in the number of persons eligible for such a program and rise in the transportation fees. It may be attributable to the fact that Government has taken little interest in effective incidence of the transportation fee reduction/exemption after taking into considerations characteristics of transportation market. In 2002, the transportation fee reduced or exempted was estimated to the total of 223.5 bil. won or 0.05% to the GDP, which increases five times as much as the 0.01% to GDP in 1995. Though such proportion is relatively lower than those of other parts in social welfare, the annual increase rate rose to 31.2%. This study indicates that the effective incidence of reduction/exemption fee for the socially vulnerable groups imposed burdens on not only the establishments but the users. The main reasons may be that the price of demand for the public transportation fee is inelastic and that most of the people affected by the effective incidence belong to the socially vulnerable groups, who use the public transportation means. The number of persons eligible for and making use of the reduction/exemption program will increase, and the range of the program and mobility rights of the weak class will expand. Then, the total benefits for the transportation fee reduction will increase the burdens of lower-middle-and-low-income groups. In this context, Government needs to improve the transportation fee reduction/exemption program, taking into considerations its effective incidence of the total benefits for the transportation fee reduction.
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KEYWORD
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transportation fee reduction/exemption program, total benefits for transportation fee reduction, effective incidence, incidence
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