Poster Paper: Impact of Poverty Reduction Program on Family Expenditures: An Analysis of the National Basic Livelihood Security Program in South Korea

Thursday, November 2, 2017
Regency Ballroom (Hyatt Regency Chicago)

*Names in bold indicate Presenter

Sam Han and Qin Gao, Columbia University


This study examines the impact of the National Basic Livelihood Security (NBLS) program of South Korea on changes in family consumption related to the human capital investment. A regression discontinuity (RD) design are adopted while considering that program participation is largely decided by whether a household income is below an official poverty line or not. Using the 2014 & 2015 Korean Welfare Panel Study (KOWEPS) data set, I find that the program eligibility increases 64% of the probability of NBLS participation (p<0.001) at the threshold where pre-program household incomes are equal to official poverty lines. We could not find the statistically significant difference on changes in total, medical, and education expenditures between the recipient and non-recipient families, which remains robust through sensitivity analysis.