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KMID : 1124020170330030113
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Korean Social Security Studies
2017 Volume.33 No. 3 p.113 ~ p.137
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Paradox of low child poverty and low fertility in Korea and Public family expenditure
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Lee Sang-Eun
Kim Hee-Chan
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Abstract
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This study set a hypothesis that the paradoxical situation of low child poverty and low fertility in Korea is `Poverty avoidance strategy through low fertility` and investigated it empirically. For this, we analyzed the relationship between child pervert and low fertility in the OECD countries and compared them with the situation in Korea. Then, we did simulation analysis about what would happen to household poverty and household finances if there were one more child in Korean households using the 2015 National Statistical Office`s Household Income and Expenditure Survey microdata. As a result of the analysis, the OECD countries showed a negative relation(-) between child poverty rate and fertility rate. However, unlike the tendency, there was an exceptional situation: low child poverty and low fertility in Korea. In the results of the simulation about if there were one more child, we found it that additional child support increased not only child poverty but the ratio of expenditure to household income and the proportion of deficit households, the instability of the household`s financial situation by declining household income. The results of this analysis suggest that we should lower the risk of child poverty and improve the fertility rate through the expansion of public family expenditure. In particular, it`s primarily necessary to establish a child allowance that is most directly supportive to households raising children through cash payments.
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KEYWORD
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child poverty, low fertility, child allowances, public family expenditure
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