Benefit Reforms For Inclusive Societies In Korea

Protecting people, rather than specific jobs, plays a key role in promoting labour-market inclusiveness and dynamism. Effective unemployment benefits reduce inequality, and raise productivity by facilitating a good match between workers’ skills and job requirements.

Protecting people, rather than specific jobs, plays a key role in promoting labour-market inclusiveness and dynamism. Effective unemployment benefits reduce inequality, and raise productivity by facilitating a good match between workers' skills and job requirements. They are a crucial policy lever for adapting to the major societal, technological and environmental transitions of our time. This report is the first of a number of OECD country reviews of income support policies. Each report analyses key policy challenges, discusses recent reform initiatives, and identifies good practices from other OECD countries. This report on Korea focuses on avenues for strengthening benefit coverage, income security and re-employment in the context of a 'dual' labour market with large parts of the workforce in short-duration, non-standard or informal employment. It welcomes Korea's recent reforms towards more accessible jobseeker support, and points to priorities for additional policy action to make income and employment support more effective and inclusive

Protecting people, rather than specific jobs, plays a key role in promoting labour-market inclusiveness and dynamism. Effective unemployment benefits reduce inequality, and facilitate a good match between workers’ skills and job requirements.

In recent years Korea has stepped up efforts to reduce inequalities in recognition that a fairer economic model is also the most sustainable one. In order to support this new policy direction, the OECD has carried out novel analysis of inclusive growth building on its Framework for Policy Action, developed by the OECD to improve the prospects of the groups left behind.

Korea is facing mounting economic challenges. Productivity growth has been on a trend decline amid demographic headwinds, while the societal demand for inclusive growth has been on a steep rise. Furthermore, the government-led unbalanced growth model—which served Korea well in the past—has become less effective and politically palatable in recent years. As such, Korea needs a major paradigm shift to embark on a new sustainable and inclusive growth path. But policy response has been modest at best with no major reforms being implemented over the past two decades. We propose a paradigm shift in Korea’s economic framework, involving a simultaneous big push for greater economic freedom and stronger social protection within the parameters set by long-run fiscal sustainability. We also provide a detailed account of structural reforms to boost economic freedom and sustainable funding plans for stronger social protection.

This report discusses the role of Korea's active labour market policies (ALMPs) and one-stop shops for employment and social services in fostering a more inclusive labour market.

Despite having advanced social protection systems, OECD countries still face challenges in identifying, enrolling, and providing benefits and services to all those in need. Even when programmes are well-designed and adequately funded, cumbersome enrolment processes and challenges in service and benefit delivery can be an obstacle to the full take-up of social programmes. Advances in digital technologies and data can go a long way towards making social protection more accessible and effective. This report presents a stocktaking of OECD governments’ strategies to identify individuals and groups in need, collect and link (potential) beneficiary data across administrative and survey sources, and apply data analytics and new technologies to improve programme enrolment and the benefit/service delivery experience – all with the objective of reaching people in need of support in OECD countries.

Economic growth picked up in 2017, but reforms are needed to sustain Korea's convergence toward the income levels in the most advanced countries. Its labour productivity is 46% below the top half of OECD countries, reflecting problems in the service sector. In addition, productivity in small ...

In a period of rapid change for welfare states around the world, this insightful book offers a comparative study of three historically small welfare states: the US, Japan, and South Korea. Featuring contributions from international distinguished scholars, this book looks beyond the larger European welfare states to unpack the many common political and institutional characteristics that have constrained welfare state development in industrialized democracies.

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