ABSTRACT

This paper analyzed the effect of poverty alleviation for the elderly through public pension by using materials from the first Seoul Welfare Panel 2009. Based on the comparison of profiles of public pension(including the contributory old-age pension) recipients and non-recipients, non-recipients had more vulnerable socioeconomic aspects. It has been found that public pension plays a significant role for poverty alleviation of the elderly thanks to the recent positive policy changes such as the increase in the number of old-age pension recipients based on the maturity of National Pension and the introduction of the non-contributory basic old-age pension. The difference of poverty rate before and after receiving public pension (contributory and non-contributory pension) was 10.2% and the effect of poverty rate decrease through public pension was 34%. However, 19.8% of poverty rate and a poverty gap of 370,000 Korean Won per household of the poor old after receiving the pension still remain. By income groups, the effect of poverty alleviation differed. The effect was greatest with the income group of 100-150% of the living minimum cost and the effect reducing the poverty gap was highest with higher income groups of 200-300% of the minimum living cost. This shows that as for higher income groups, the relatively higher public pension income works as a major source of stable living of the elderly. Based on the analyses of effects and efficiency of poverty alleviation through alternatives to expand public pension (Alternative 1: Strategy to Increase the Number of Recipients vs. Alternative 2: Strategy to Increase the Receiving Amount of the Current Recipients), the effectiveness of poverty alleviation was excellent with Alternative 1 (to cover more recipients) while the efficiency of poverty alleviation against spending was excellent with Alternative 2 (to increase the receiving amount).

KEYWORD

public pension, Basic old-aged pension, poverty for the elderly, the effectiveness of poverty alleviation, the efficiency of poverty alleviation, alternatives for poverty alleviation, Seoul Welfare Panel

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