Publications [#194714] of Erin Hye-Won Kim

Other Working Papers

  1. Erin Hye-Won Kim, Public support improves elders’ life satisfaction despite crowding-out of family support: Evidence from a new government pension in Korea (2012) (Job Market Paper.)
    (last updated on 2012/02/21)

    Abstract:
    Public pensions are one of the major policy tools geared to social protection of the elderly. However, little is known about how the programs affect elders particularly in terms of their subjective well-being. Such effectiveness depends in part on the extent to which public pension income displaces or ‘crowds out’ family elder support. Using the introduction of the Basic Old-Age Pension (BOAP), a non-contributory old-age pension in Korea, this paper examines how the program affects elders’ self-reported life satisfaction and children’s support through transfers and co-residence. To make the causal inferences, this paper utilizes a difference-in-difference research design. Results show that BOAP benefits did raise elders’ life satisfaction. Every $1 from the pension led to a 30-cent drop in transfers from children, netting a 70-cent increase in elders’ income. No effect was found on the likelihood of elders’ co-residing with children. These findings may generalize to other rapidly industrializing societies with a strong family elder-support tradition and emerging public elder-support system.

Erin Hye-Won Kim