Hostname: page-component-586b7cd67f-dsjbd Total loading time: 0 Render date: 2024-11-25T20:44:51.870Z Has data issue: false hasContentIssue false

Contrasting approaches to old-age income protection in Korea and Taiwan

Published online by Cambridge University Press:  18 August 2010

YOUNG JUN CHOI*
Affiliation:
Department of Public Administration, Korea University, Seoul, Republic of Korea.
JIN WOOK KIM
Affiliation:
Department of Social Welfare, Sogang University, Seoul, Republic of Korea.
*
Address for correspondence: Young Jun Choi, Department of Public Administration, Korea University, Anam-dong, Seongbuk-gu, Seoul, Seoul 136-701, Republic of Korea. E-mail: [email protected]

Abstract

Old-age income security has become one of the most important social policy issues in two East Asian emerging welfare states, South Korea and Taiwan, as they transform at a remarkable pace into societies with a representation of older people approaching that of western countries. During the last two decades, the two countries have developed different forms of social protection for older people. South Korea has expanded social insurance pensions with means-tested benefits, whereas Taiwan has introduced flat-rate old-age allowance programmes that exclude the rich rather than target the poor. much has been written about these programmes, but their actual performance in reducing old-age poverty has not been thoroughly examined. This paper analyses the anti-poverty effect of these programmes, firstly by describing recent developments in the two countries, and secondly by examining headcount poverty rates and the size and incidence of the ‘poverty gap’ using nationally-representative micro-household datasets. We argue that while the programmes have increasingly reduced old-age income security, the different policy choices have resulted in distinctive welfare outcomes in the two countries. In the final section of the article, we discuss the long-term implications of the recent policy reforms.

Type
Research Article
Copyright
Copyright © Cambridge University Press 2010

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Aspalter, C. 2002. Democratization and Welfare State Development in Taiwan. Ashgate, Aldershot, UK.Google Scholar
Atkinson, A. B., Rainwater, L. and Smeeding, T. 1995. Income Distribution in OECD Countries: Evidence from the Luxembourg Income Study. Social Policy Study 18, Organisation for Economic Co-operation and Development, Paris.Google Scholar
Cheng, P., Cheng, C. and Leu, C. 2007. Economic analysis of social assistance in Taiwan. Paper presented at the International Symposium on Social Policy in Asia, Hitotsubashi University, Tokyo, 9–10 February.Google Scholar
Choi, Y. J. 2006. Transformations in economic security during old age in Korea: the implications for public pension reform. Ageing & Society, 26, 4, 549–65.Google Scholar
Cox, D. 1987. Motives for private income transfers. Journal of Political Economy, 95, 3, 1045–76.CrossRefGoogle Scholar
Esping-Andersen, G. 1990. The Three Worlds of Welfare Capitalism. Polity, Cambridge.Google Scholar
Esping-Andersen, G. 1999. Social Foundations of Postindustrial Economies. Oxford University Press, Oxford.Google Scholar
International Labour Organisation (ILO) 2004. KILM: Key Indicators of the Labour Market. ILO, Geneva.Google Scholar
Kim, J. W. 2004. The welfare mix in Korea 1987–2002: dynamics of environments, institutions and welfare politics. Unpublished PhD thesis, University of Bath, Bath, UK.Google Scholar
Kim, J. W. and Choi, Y. J. 2008. Private Transfers and Emerging Welfare States in East Asia: Comparative Perspectives. LIS Working Paper 506, Luxembourg Income Study, Luxembourg.Google Scholar
Kim, Y.-M. 2008. Beyond East Asian welfare productivism in South Korea. Policy and Politics, 36, 1, 109–26.Google Scholar
Kim, Y.-M. and Kim, K. S. 2004. Pension reform in Korea: conflict between social solidarity and long-term financial sustainability. In Bonoli, G. and Shinkawa, T. (eds), Ageing and Pension Reform Around the World: Evidence from Eleven Countries. Edward Elgar, Cheltenham, UK, 208–29.Google Scholar
Korea, Ministry of Health, Welfare and Family Affairs (MHWFA) 2007. Statistical Yearbook of Health, Welfare and Family Affairs. MHWFA, Seoul. (In Korean)Google Scholar
Korea, Ministry of Health, Welfare and Family Affairs (MHWFA) 2008 a. SEROMAZI Plan. Revised version, MHWFA, Seoul. (In Korean)Google Scholar
Korea, Ministry of Health, Welfare and Family Affairs (MHWFA) 2008 b. 2007 White Paper on Health, Welfare and Family Affairs. MHWFA, Seoul. (In Korean)Google Scholar
Mitchell, D. 1991. Income Transfer in Ten Welfare States. Avebury, Aldershot, UK.Google Scholar
Shin, D. M. 2003. Social and Economic Policies in Korea: Ideas, Networks and Linkages. Routledge, London.CrossRefGoogle Scholar
Taiwan, Bureau of Labour Insurance (BLI) 2010 a. General Condition of Labor Insurance from 1950. BLI, Taipei. Available online at http://www.bli.gov.tw/attachment_file/report/year/097/h010.htm [Accessed 20 April 2010].Google Scholar
Taiwan, Bureau of Labour Insurance (BLI) 2010 b. General Condition of Old-age Farmers' Welfare Allowance (OFWA) from 1995, and General Condition of Old-age Citizens' Welfare Allowance from 2002, and General Condition of Old-age Indigenes' Welfare Allowance from 2002. BLI, Taipei. Available online at http://www.bli.gov.tw/en/sub.aspx?a=t6k9oeIPRko%3d [Accessed 20 April 2010].Google Scholar
Taiwan, Council for Economic Planning and Development (CEPD) 2003. Taiwan Statistical Data Book. CEPD, Taipei.Google Scholar
Tang, K.-L. 2000. Social Welfare Development in East Asia. Palgrave, Basingstoke, UK.Google Scholar
Yang, J.-J. 2003. Democratic governance and bureaucratic politics: a case of pension reform in Korea. Policy and Politics, 32, 2, 193206.CrossRefGoogle Scholar