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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
- Issue Date
- 2016
- Citation
- Korean Journal of Policy Studies, Vol.31 No.1 pp. 1-29
- 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
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