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KMID : 1124020100260040095
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Korean Social Security Studies
2010 Volume.26 No. 4 p.95 ~ p.119
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Redistributive Effects of Public Transfer Programmes: A Cross-national analysis
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Yeo Eu-Gene
Song Chi-Ho
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Abstract
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The purpose of this study is to analyze redistributive effect of each public transfer program-social demogrant, public pension, unemployment insurance, other insurances, and social assistance- through the cross-national analysis. The countries included in this analysis are Sweden, Germany, the United Kingdom. and Korea since these nations represent Social-democratic, Conservative, and Liberal welfare regime, respectively. Korea is also included as the developing country which is often stated as Confucian welfare model. To achieve this objective, this study attempts to disaggregate redistributive effects into individual public transfer programs’ contributions by using data from the KOWEPS (Korea Welfare Panel Study) and LIS (Luxemburg Income Study). The results of analysis are as such: Firstly, poverty reduction effect of public transfer is highest in U.K. followed by Sweden, Germany, and Korea. The ratio of public transfer to disposable income is lower and disparity by quintile is also much smaller in Korea than in other countries. Secondly, while redistributive effects of public transfer mostly stem from by social assistance in Korea and U.K., those effects derive largely form social insurance programmes in Sweden and Germany. Thirdly, disposable income poverty indices are lowest in Sweden followed by Germany, Korea and U.K. Finally, target efficiency of public transfer is highest in U.K. and Korea. An implication of these results is that cross-national deviation in redistributive effects would reflect the distinctive developmental path-dependency in their welfare institutions. In whole aspect, while Sweden takes on a universal welfare state, U.K. and Korea take on a residual welfare state.
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KEYWORD
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redistributive effect, social welfare programmes, welfare regime, path dependency
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