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Applying Regression Discontinuity Design to Social Policy: An Evaluation of the Welfare-to-Work Program in South Korea

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Authors
Lee, Seog-Min; Kwon, Huck-ju
Issue Date
2016
Publisher
Graduate School of Public Administration, Seoul National University
Citation
Korean Journal of Policy Studies, Vol.31 No.1 pp. 1-29
Keywords
regression discontinuity designwelfare-to-work programsworking dayslabor income
Abstract
Social policy studies focusing on poverty reduction attempt to measure
poverty reductions rates and poverty gaps, but they do not provide criteria to
determine whether a given social policy is a success or failure. In this study, we
suggest using regression discontinuity design to establish evaluation criteria and
validate estimation results in social programs. Using the dataset from the Korean
Welfare Panel, first we conduct, first, a difference-in-differences comparison
between welfare recipients under the National Basic Livelihood Security system
and nonrecipients whose income falls under the minimum cost of living. Secondly,
we establish the counterfactual effects of the program among nonrecipients
whose income is below the minimum cost of living and among nonrecipients
whose income is above the minimum cost of living. Last, we analyze treatment
effects by comparing welfare recipients with income below the minimum cost of
living and nonrecipients with income above the minimum cost of living using
the regression distribution design method. We argue that the National Basic
Livelihood Security system as a welfare-to-work program has positive effects on
labor market participation, which has not been established by previous studies.
ISSN
1225-5017
Language
English
URI
https://hdl.handle.net/10371/98460
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Graduate School of Public Administration (행정대학원)Dept. of Public Administration (행정학과)Korean Journal of Policy Studies (정책논총)Korean Journal of Policy Studies (정책논총) vol.31 no.1-3 (2016)
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