The Effects of Old-Age Public Transfer on the Well-Being of Older Adults: The Case of Social Pension in South Korea

Lee, Seungho; Ku, Inhoe; Shon, Byongdon

doi:10.1093/geronb/gbx104

Cited by 26 publications

(30 citation statements)

References 22 publications

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“…The fact that the program was implemented near the peak of the 2007-2008 financial crisis raises the possibility that the recession may have affected poor seniors to a greater extent and through this pathway partially offset the correlation between the BOAP and beneficiaries' financial condition. Indeed, recent research on the 2014 reform demonstrated a declining poverty gap and a significant rise in consumption expenditures and subjective well-being among those who benefited from the reform (Lee et al, 2019;Pak, 2020a;2020b). We extend this line of research by examining whether the 2014 reform had a spillover effect on health outcomes.…”

Section: Basic Old-age Pension In South Koreamentioning

confidence: 80%

“…Moreover, studies have disagreed as to whether the BOAP reduced labor supply and to what extent replaced private transfer from adult children to parents. Lee et al (2019) found no changes in labor income and private transfer income after the 2014 reform, while Lee and Lee (2009) found a moderate correlation between the BOAP and private transfer among middle-income families.…”

Section: Basic Old-age Pension In South Koreamentioning

confidence: 88%

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What are the effects of expanding social pension on health? Evidence from the Basic Pension in South Korea

Pak

2021

The Journal of the Economics of Ageing

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Non-contributory social pension has been widely used to provide minimum income support for disadvantaged seniors. Despite its efficacy in reducing old-age poverty, only a few studies systematically assessed whether the benefits of social pension extend to health outcomes. In this paper, we exploit a reform to the South Korean social pension in 2014 to provide evidence on the health effects of expanding social pension. Using data from the Korean Longitudinal Study of Aging, we estimate a series of differencein-differences models that compare changes in health of individuals age-eligible for the social pension (age ≥ 65) to those younger than the minimum qualification age (age < 65), before and after the reform in 2014. The estimates show an average of 8.1-9.0% reductions in the count of depressive symptoms attributable to the reform. We also find that the mental health benefit comes primarily from beneficiaries being more satisfied with their financial condition and overall quality of life. However, despite the large increase in income there were no significant improvements in grip strength and self-rated health. Overall, this study highlights the importance of social pension as a means of protecting mental health of disadvantaged seniors.

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Section: Basic Old-age Pension In South Koreamentioning

confidence: 80%

Section: Basic Old-age Pension In South Koreamentioning

confidence: 88%

What are the effects of expanding social pension on health? Evidence from the Basic Pension in South Korea

Pak

2021

The Journal of the Economics of Ageing

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“…The South Korean government introduced the basic old-age pension in January 2008 and doubled its monthly allowance in July 2014 (Lee 2017). The expansion in 2014 was one of the largest social welfare reforms in South Korean history (United Nations ESCAP 2015) and provides an excellent opportunity to isolate exogenous increase in pension benefits (Lee, Ku, and Shon 2019). Our empirical model examines changes in travel frequency and expenditures before and after the 2014 reform among eligible persons, in comparison to noneligible individuals.…”

Section: Introductionmentioning

confidence: 99%

Old-Age Income Security and Tourism Demand: A Quasi-Experimental Study

Pak

2019

Journal of Travel Research

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A growing number of countries have introduced noncontributory pension to guarantee a minimum income for disadvantaged seniors. The current state of knowledge does not inform us how this change has impacted senior tourism demand and industry. Additional pension income may relax budget constraints and provide an opportunity to fulfill a desired level of tourism. For disadvantaged elderly, however, its impact on tourism choice is not clear because of consumption needs for other necessities and limited mobility. This study examines a recent social pension reform in South Korea to study the impact of old-age income security on tourism demand. We find that a doubling of public pension benefits is associated with an average of 23–59.5% increase in travel frequency and 52–96% rise in travel spending among benefit-eligible seniors. These results suggest that pension reforms aiming to improve old-age income security will have a positive influence on the tourism and hospitality industry.

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“…Studies analyzing the impact of social security schemes often use difference-indifference (DD) or regression discontinuity (RD) design methods [2]. We used a DD model to control for pre-policy characteristics and to estimate the policy effect of the BOP on The DD model compares the changes in the beneficiaries and non-beneficiaries in the pre-and post-policy periods.…”

Section: Discussionmentioning

confidence: 99%

“…Several studies have shown that the BOP reduced the poverty rate of older adults [ 1 ]. The most recent study, by Lee et al [ 2 ], conducted a comprehensive analysis of the effects of introducing the Basic Pension, an upgraded version of BOP in 2014, including on total consumption, non-consumption expenditures, poverty rate and poverty gap. They used a more sophisticated methodology than that of previous studies, but still focused only on material wellbeing.…”

Section: Introductionmentioning

confidence: 99%

The Aassociation Between the Basic Old-Age Pension and Depression of the Older Adults in Korea

Kim

Lee

Kim

2020

J Prev Med Public Health

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Objectives: The purpose of this study was to identify investigate the association between the non-contributory pension, the Basic Old-Age Pension (BOP), which is a non-contributory pension, and depression as part of the mental health of thein BOP beneficiaries in South Korea. Method: We used the second and third waves (2007-2008) of the Korea Welfare Panel Study to identify the effect of the BOP on mental health in the year of its introduction. The Center for Epidemiological Studies-Depression Scale(CES-D), applied in a Korean context, was used to evaluate mental health. To analyze the effect of the BOP, a difference-indifference approach was used for in analyses of the wholeall subjects and subby groups. Results: For athis study population of 760 adults, the benefits of the BOP did not have a statistically significant relationship with depression for thein its beneficiaries. After controlling for type of household, the BOP was still not associated with decreased lower reporting of depression symptoms, both either in single-and or doublebeneficiary households, in the very year of the benefit. (using a with the statistical significance threshold of 0.05). Conclusion: In this research, it was shown that tThe BOP policy had no significant relationship with the recipients' reducedthe level of depression symptoms among recipients. However, this did should not not be interpreted as implying that income subsidizing subsidy programs for the older adults, such as the BOP, do not affect mental health, considering the importance of their economic hardship in this population 메모 [오전2]:

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The Effects of Old-Age Public Transfer on the Well-Being of Older Adults: The Case of Social Pension in South Korea

Cited by 26 publications

References 22 publications

What are the effects of expanding social pension on health? Evidence from the Basic Pension in South Korea

What are the effects of expanding social pension on health? Evidence from the Basic Pension in South Korea

Old-Age Income Security and Tourism Demand: A Quasi-Experimental Study

The Aassociation Between the Basic Old-Age Pension and Depression of the Older Adults in Korea

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