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Employment-friendly welfare policy and information asymmetry : Evidence frwom Sweden and Korea

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  • Employment-friendly welfare policy and information asymmetry
  • Kwon,Illong; Lee, Jinho
  • Seoul National University


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Title Employment-friendly welfare policy and information asymmetry
Similar Titles
Sub Title

Evidence frwom Sweden and Korea

Material Type Articles
Author(English)

Kwon,Illong; Lee, Jinho

Publisher

Seoul,South Korea : Seoul National University

Date 2016
Journal Title; Vol./Issue The Korean Jounal of Policy Studies:vol.31(no.1)
Pages 20
Subject Country South Korea(Asia and Pacific)
Sweden(Europe)
Language English
File Type Link
Subject Social Development < Social Welfare
Social Development < Employment
Government and Law < General
Holding Seoul National University
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Abstract

This paper provides a simple theoretical framework for analyzing how welfare polices can affect the incentive to work and compares the recent welfare policy reforms of Sweden and Korea. Sweden has systematically reformed its welfare policies in response to slowing population and economic growth and an aging population. This paper shows that recent Swedish reforms of tax policies and unemployment benefits bear out theoretical predictions that such reforms will help reduce moral hazard and adverse selection problems. In comparison, recent Korean reforms of tax policies and unemployment benefits have focused on moral hazard problems but have largely ignored adverse selection problems.