Does the Universal child benefit change household consumption expenditure among families with children in Korea?

Kang, Ji Young; Chun, Yung; Ahn, Seo Yeon

doi:10.17997/swry.67.1.1

Cited by 2 publications

(10 citation statements)

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“…They employed the Household Income and Expenditure Survey in 2017 and 2019 and found child benefits increase expenditure on education. Additionally, using the Household Financial Welfare Survey in 2018 and 2019, Kang et al (2020) established that child benefits are associated with the expenditure on education for low‐income families. The results indicate that child benefits positively affect child outcomes differently depending on family income groups.…”

Section: Resultsmentioning

confidence: 99%

“…The high cost of raising children mostly stems from investing child outcomes, as viewed through the resource channel perspective. To be specific, much of current empirical research on the effect of child benefits on household consumption and expenditure shows in common that Korean parents are likely to spend most of their child benefits on childcare and education (Kang, 2020; Kang et al, 2020; Lee & Nam, 2020; Namgung & Huh, 2018). Kang et al (2020) mentions that child benefits not only affect household income but also serve as an investment in the human capital of children with regard to child development.…”

Section: Literature Reviewmentioning

confidence: 99%

“…To be specific, much of current empirical research on the effect of child benefits on household consumption and expenditure shows in common that Korean parents are likely to spend most of their child benefits on childcare and education (Kang, 2020; Kang et al, 2020; Lee & Nam, 2020; Namgung & Huh, 2018). Kang et al (2020) mentions that child benefits not only affect household income but also serve as an investment in the human capital of children with regard to child development. Based on the perspective of positive returns to child outcomes, we could expect that families spend on child outcomes during universal child benefit implementation.…”

Section: Literature Reviewmentioning

confidence: 99%

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Effect of child benefit payments on child outcome expenditures in South Korea

Jinwoo

Pollard

Dossani

2023

Asian Soc Wrk & Pol Rev

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Extensive research has shown the positive impact of conditional child benefits on child outcomes. However, there is limited work on the impact of universal child benefit payments on how families spend on child outcomes. Our study explores this issue. This study examined the relationship between child benefit payments on child outcome expenditures using longitudinal data from the Korean National Survey of Tax and Benefit (N = 3681 households) and a household‐ and year‐fixed effects regression model. We found that child benefit payments are positively associated with child outcome expenditures across family income groups. Furthermore, the analysis results suggest that compared to high‐income family groups, low‐ and middle‐income family groups increase spending on child outcome expenditures in response to child benefit payments. Finally, the policy implications of this are discussed.

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Section: Resultsmentioning

confidence: 99%

Section: Literature Reviewmentioning

confidence: 99%

Section: Literature Reviewmentioning

confidence: 99%

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Effect of child benefit payments on child outcome expenditures in South Korea

Jinwoo

Pollard

Dossani

2023

Asian Soc Wrk & Pol Rev

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“…For Korea, one study presented the impact of CA on financial hardship (Kang, 2020). Unlike the US descriptive studies, Kang (2020) employed quasi-experimental design by using DiD methods with the Household Income and Expenditure Trends data in 2018 and 2019. The study demonstrated a significant positive impact of CA on all types of household income (total income, disposable income, transfer income and social benefit).…”

Section: Resultsmentioning

confidence: 99%

“…While the US studies provided descriptive studies, two Korean studies measured poverty rate with various measurements and employed DiD strategy. One study examined the impact of CA on poverty by using gross income and disposable income as two indicators of poverty as well as the income-to-needs ratio (Kang, 2020). Overall, the study indicated that CA increased the ratio of income to the poverty line and reduced poverty rate.…”

Section: Ijssp 4311/12mentioning

confidence: 99%

A comprehensive literature review of the impact of child tax credit/child allowance in the United States and South Korea

Choi

Lee

2023

IJSSP

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PurposeThe America Rescue Plan (ARP) transformed the Child Tax Credit (CTC) into a more generous, inclusive monthly payment from July through December 2021. However, the expansion has been terminated and the annual CTC has been reinstated. The United States is one of the few OECD countries that do not have a child allowance system and South Korea has recently adopted child allowance in 2018. This study aims to comprehensively review the existing literature and evidence on ARP-CTC in the United States and Universal Child Allowance (CA) in Korea.Design/methodology/approachThe researchers completed a database search between July 1, 2022 and July 20, 2022. For the United States, the search keywords were child tax credit OR expanded child tax credit OR CTC OR child allowance. For Korea, the search keyword was child allowance. Searches were conducted using 79 databases. A total of 36 US studies and 7 Korean studies met all the inclusion criteria and proceeded to the extraction process. A narrative thematic synthesis approach was employed to identify themes in the findings. The results were organized based on the characteristics of the studies and the post-intervention outcomes.FindingsStudies in the United States focused primarily on economic outcomes, including poverty and material hardship, reflecting the concern policymakers and researchers have about child poverty. On the other hand, Korean studies examined employment, economic well-being, psychological well-being and expenditures in a relatively balanced share. Overall, studies found that both ARP-Child Tax Credits and Universal Child Allowance reduced child poverty and improved material hardship. Also, studies in both countries suggested that both policies had positive impacts on parental psychological well-being.Originality/valueTo the authors knowledge, this paper is the first to comprehensively review the impact of the US ARP-CTC in comparison with the Korean child allowance. Two studies reviewed and updated the literature on US ARP-CTC as a round-up paper. Moreover, the authors conduct cross-national comparative analyses between the United States and Korea. The contexts of the child allowance system in the two nations have both similarities and differences, thereby offering a unique opportunity for a comparative study.

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Does the Universal child benefit change household consumption expenditure among families with children in Korea?

Cited by 2 publications

References 0 publications

Effect of child benefit payments on child outcome expenditures in South Korea

Effect of child benefit payments on child outcome expenditures in South Korea

A comprehensive literature review of the impact of child tax credit/child allowance in the United States and South Korea

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