Effectiveness of Social Welfare Programmes in East Asia: A Case Study of Taiwan

Abstract

Using the 2008 Family Income and Expenditure Survey, this study examined the effectiveness of social welfare programmes in Taiwan. The empirical evidence shows that most types of social welfare spending were limited in 2008. However, the social welfare programmes that were in place substantially reduced income inequality in Taiwan. Using the Organisation for Economic Co-operation and Development (OECD) poverty threshold, the results reveal that 14 per cent of the sample's families were poor in terms of market income, but this figure decreased to 7 per cent after government intervention. Income inequality in Taiwan was similar to that of other East Asian countries such as Japan and South Korea, but Taiwan spent much less money on social welfare programmes than OECD countries, and therefore Taiwan's reduction of poverty was much lower as well.

How kinship systems and welfare regimes shape leaving home: A comparative study of the United States, Germany, Taiwan, and China

“…In Taiwan, almost total enrollment of adolescents in higher education generates a 'ceiling effect' of keen competition in educational attainment and labor market entry, and families' cultural and social capital resources also serve as a precondition for the maintenance of intergenerational status. Moreover, being an island of limited size favors a relatively homogeneous social structure and production regime (Kim 2016;Huang and Ku 2011;Feng and Han 2010). China's welfare regime leans more toward the United States, whereas Taiwan's shows similarities with Germany in terms of redistribution and social inclusion.…”

Resource Allocation in Families With Children in Taiwan: Do Poverty and Family Structure Make a Difference?

“…Using the 2008 Family Income and Expenditure Survey, Huang and Ku (2011) found that family structure in Taiwan is quite diverse, and the percentages of the various types of family structures were notably different from the Downloaded by [University of Liverpool] at 08:23 05 January 2015 percentages in the United States and Europe. First, extended families made up one third of two-parent families with children, whereas nuclear families composed two thirds of two-parent families with children.…”

“…9% in 20079% in (DGBAS, 2008. In other words, despite Taiwan's political democratization, social welfare programs increased relatively little and thus had only modest effects on reducing poverty for families in need (Huang & Ku, 2011;Ku, 2003).…”

“…For example, the Gini coefficient Resource Allocation in Families With Children in Taiwan 413 (a measure of income inequality with a value of 0 expressing total equality and a value of 1 representing maximal inequality) expanded significantly from 0.277 in 19800.277 in , to 0.312 in 19900.277 in , to 0.326 in 20000.277 in , and to 0.341 in 20080.277 in (DGBAS, 19820.277 in , 2010.Over the same period, the traditional family structure in Taiwan, extended families, has gradually reduced, and nuclear, singleparent, and grandparent-only (i.e., only grandparents and grandchildren) families have all increased (Hsueh, 2008;Huang, 2000). Although Taiwan has expanded its social welfare programs and targeted disadvantaged families in recent years, the effects of the programs on the income distribution among these families were modest (Huang & Ku, 2011). Additionally, research has shown that grandparent-only families and single-parent families are more likely to be poor in Taiwan than nuclear families (Hsueh, 2008;Huang & Ku, 2011).…”

“…Although Taiwan has expanded its social welfare programs and targeted disadvantaged families in recent years, the effects of the programs on the income distribution among these families were modest (Huang & Ku, 2011). Additionally, research has shown that grandparent-only families and single-parent families are more likely to be poor in Taiwan than nuclear families (Hsueh, 2008;Huang & Ku, 2011).…”