What does this research mean for the field?

While welfare expansion and public pensions have significantly reduced absolute old-age poverty in South Korea, sufficient earned income remains essential for escaping relative poverty due to limited social security coverage. Novelty: ClaimNovelty.INCREMENTAL. Consensus alignment: ConsensusAlignment.NEUTRAL.

What question did this study set out to answer?

To investigate the determinants and longitudinal trends of absolute and relative old-age poverty amidst expanding welfare expenditures in South Korea.

September 8, 2026Asian-Pacific Economic Literature

Why Is Old‐Age Poverty Still High Despite Welfare Expansion? Evidence From South Korea

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Authors

THTaiwon HaPusan National University

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Implication

Panel data analysis reveals welfare reduces absolute but not relative old-age poverty, indicating that escaping relative poverty requires earned income alongside social security expansion.

Key Points

To investigate the determinants and longitudinal trends of absolute and relative old-age poverty amidst expanding welfare expenditures in South Korea.
Evaluated longitudinal panel data from 2003 to 2022 using both absolute and relative poverty thresholds.
Employed fixed-effects ordered logistic regression to assess the impact of public pensions, means-tested benefits, and earned income on elderly poverty status.
Absolute poverty declined from 38.2% in 2003 to 14.5% in 2022, whereas relative poverty decreased only slightly from 48.6% to 44.4%.
Poverty metrics largely plateaued after 2015, experiencing only a brief temporary improvement during the COVID-19 pandemic.
Public pensions and means-tested transfers substantially mitigated absolute poverty, but substantial earned income was required to overcome relative poverty due to restricted social security coverage.

Cite This Study

Taiwon Ha (2026) studied this question.

synapsesocial.com/papers/6a9fd7b758e84d0ff5b46994 https://doi.org/10.1111/apel.70062

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Implication

Panel data analysis reveals welfare reduces absolute but not relative old-age poverty, indicating that escaping relative poverty requires earned income alongside social security expansion.

Why Is Old‐Age Poverty Still High Despite Welfare Expansion? Evidence From South Korea

Discussion

Member takes

Implication

Key Points

Cite This Study

Why Is Old‐Age Poverty Still High Despite Welfare Expansion? Evidence From South Korea

Discussion

Member takes

Implication

Key Points

Cite This Study

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