Poverty reduction effectiveness of public income transfers in South Korea in the wake of the global financial crises: a panel-data analysis

Abstract

By using a longitudinal data-set from the Korean Labor and Income Panel Study, the present study examines the poverty reduction effectiveness of public income transfers in South Korea from 1998 to 2011. Findings indicate that the average poverty rate fell from over 20% between 1998 and 2000, to 14% from 2001 to 2006, rose to 17% by 2008, and declined to 15% in 2011. However, the poverty-rate reduction effectiveness continuously increased from 5.5% in 1998 to 32.8% in 2011. The poverty-gap reduction effectiveness also improved sixfold from 6.8 to 39.6% over the same period.