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Strengthening social cohesion in Korea

A policy toolkit for growth and social cohesion in Korea Overview: Why is social cohesion an urgent issue in Korea?Korea’s legacy of “egalitarian growth”Factors increasing inequality in Korea in recent years Labour market dualism Low productivity in the service sector and small firms The limited effect of the tax/benefit system on income inequality and poverty Challenges to achieving social cohesion Rapid population ageing and its impact on public social spending The question of North Korea Coping with these challenges Advance gradually and cautiously in expanding social welfare programmes Promote economic growth Finance rising social spending through tax measures that limit the impact on growth References Income distribution and poverty among the working-age population and implications for social welfare policies Introduction Income distribution and poverty in Korea: An overview Levels and trends of inequality and income poverty Importance of the labour market: Trends in wage distribution Importance of taxes and transfers: Redistribution Key features of the Korean social safety net for working-age people Development of social expenditure Korea’s social safety net for the working-age population: Principal policy instruments The National Basic Livelihood Security Programme (BLSP)Employment Insurance (EI)The Earned Income Tax Credit (EITC)Income adequacy of the Korean social safety net for working-age people The National Basic Livelihood Security Programme (BLSP)Employment Insurance (EI)In-work poverty Access to safety net benefits The impact of taxes and benefits on work incentives Are people trapped in poverty by the BLSP?Policies to improve returns from employment Are incentives stronger for EI recipients?Additional barriers to taking up employment Child care and child rearing supports Intersection of withdrawal criteria and lump-sum withdrawal Notes References Policies to tackle labour market duality in Korea Introduction Labour market duality in Korea: Overview of a complex phenomenon Non-regular work The underdevelopment of the service sector and smaller firms Mobility of non-regular workers Is Korean labour market dualism different?The policy rationale for reducing labour market duality Reducing inequality Promoting growth Complexity of the policy challenge Policies to reduce overall labour market duality Italy Mexico Spain Employment protection legislation Non-regular workers Regular workers Severance payments Link to the OECD indicator of employment protection Policies to narrow wage differentials Anti-discrimination legislation Statutory minimum wage Strengthening the role of activation policies to raise employability Improving job-search assistance Expanding social security coverage for non-regular workers Spill over effects on the efforts to reduce the size of the informal economy Improving the industrial and labour relations framework Policies targeted on groups particularly disadvantaged by labour market dualism Women Labour market barriers confronting women Policies to promote “family friendly” workplaces Older workers Early retirement results in underemployment for many senior workers Policies to improve the position of older workers in the labour market Youth Labour market difficulties affecting youth Policies to reduce mismatch by improving vocational education and training United Kingdom Notes References Combined early childhood education and care measures to ensure social cohesion Introduction Clarifying ECECpolicy goals An overview of expected outcomes of ECECpolicy for Korea Reviewing equity measures outcomes and identifying policy issues Financial burden on parents for better ECEC outcomes Stronger relationship between family background and student outcomes Different standards for staff quality Curriculum and pedagogy Staff qualification and education contents Staff-child ratio Policy issues related to female labour market outcomes and demographic challenges Low female labour force participation Targeted and/or universal access Demand-side and/or supply-side The low fertility rate Reviewing public responsibility and investment, and identifying policy issues Low public spending on early childhood education and care Low public spending on child benefits (cash or tax credits)Conclusions Notes References Moving from hospitals to primary care for chronic diseases Introduction Defining primary care The health system faces looming challenges Life expectancy has improved dramatically in Korea in recent decades Korea’s substantial elderly population is likely to live longer and suffer from multiple chronic diseases Risky health behaviours amongst the population today may mean that more Koreans will face chronic diseases High avoidable hospital admissions point towards weaknesses in primary care Korea also faces major challenges in mental health and primary care Korea’s health system is geared towards hospitals and not primary care Hospitals dominate the health system Gatekeeping in the Korean health care system is weak The boundaries between primary and secondary care are blurred The way Korea pays providers encourages greater activity rather than improved health outcomes Getting the building blocks right: Payments, flexible institutions and workforce Moving away from fee-for-service payments Delivering targeted funding to primary care requires the National Health Insurance to be a proactive purchaser not a passive payor Developing a workforce for primary care Developing support for primary health care: Professional societies, guidelines, and information for patient self-management A Korean model of primary care: Multi-specialty group practices (polyclinics)Encouraging hospitals to vertically integrate may be the optimal policy, but is likely to be difficult to achieve Team-based clinics are an appropriate starting point for strengthening primary care services However, these team-based clinics ought to be staffed by specialists, not generalists References

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