- 1815-1973 (online)
Working papers from the Economics Department of the OECD that cover the full range of the Department’s work including the economic situation, policy analysis and projections; fiscal policy, public expenditure and taxation; and structural issues including ageing, growth and productivity, migration, environment, human capital, housing, trade and investment, labour markets, regulatory reform, competition, health, and other issues.
The views expressed in these papers are those of the author(s) and do not necessarily reflect those of the OECD or of the governments of its member countries.
Promoting Social Cohesion in Korea
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- Randall S. Jones1, Satoshi Urasawa1
- Author Affiliations
- 1: OECD, France
- 05 June 2012
- Bibliographic information
Korea faces the challenge of reversing rising inequality while sustaining robust economic growth. Welltargeted increases in Korea’s low level of social spending are needed to fill holes in the safety net, especially for the elderly. The development of social security depends on closing gaps in coverage, which are due in part to labour market dualism. Dualism creates serious equity concerns, as non-regular workers face significantly lower wages, precarious jobs, less coverage by social security and less training. A comprehensive approach is required to break down dualism, including reduced employment protection for regular workers, improved social insurance coverage for non-regular workers and expanded training of non-regular workers. Education reforms are also needed to promote inclusive growth, notably by: i) improving the access of low-income children to high-quality early childhood education and care; ii) reducing reliance on private tutoring, notably at hagwons; and iii) expanding income-contingent loans to tertiary students.
- childcare, labour market dualism, basic old-age pension, earned income tax credit, student loans, Basic Livelihood Security Programme, non-regular workers, ECEC, relative poverty, hagwons, Korea, Korean economy, income inequality, services sector, social spending, education
- JEL Classification:
- D6: Microeconomics / Welfare Economics
- H5: Public Economics / National Government Expenditures and Related Policies
- I2: Health, Education, and Welfare / Education and Research Institutions
- J3: Labor and Demographic Economics / Wages, Compensation, and Labor Costs
- O53: Economic Development, Innovation, Technological Change, and Growth / Economywide Country Studies / Asia including Middle East