Do public pensions crowd out private transfers to the elderly? Evidence from South Korea

Haeil Jung, Maureen Pirog, Sang Kyoo Lee

Research output: Contribution to journalArticle

1 Citation (Scopus)

Abstract

We investigate the impact of receiving a public pension on total expenditures, food expenditures, and private transfers of the elderly in South Korea. Using a natural experiment that occurred in 1999, we are able to explore the impacts of a large public pension program expansion which newly incorporated people who had been self-employed, unemployed, and out of the labor force. We find that receipt of a public pension did not allow the elderly to increase total expenditures or food expenditures because the expansion of public pensions largely crowded out financial transfers from adult children and/or own siblings.

Original languageEnglish
Pages (from-to)455-477
Number of pages23
JournalJournal of Pension Economics and Finance
Volume15
Issue number4
DOIs
Publication statusPublished - 2016 Oct 1
Externally publishedYes

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Keywords

  • food expenditures
  • private transfers
  • Public pensions
  • total expenditure

ASJC Scopus subject areas

  • Finance
  • Economics and Econometrics
  • Organizational Behavior and Human Resource Management

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