SOCIAL SECURITY AND HOUSEHOLD SAVING IN KOREA: EVIDENCE FROM THE HOUSEHOLD INCOME AND EXPENDITURE SURVEY

다국어 초록 (Multilingual Abstract)

Using a quasi-experimental approach, the paper examines how the introduction of a social security system in Korea affects household saving.
The relatively short history of social security in Korea provides an exogenous source of variations both in time-series and cross-section. For time-series variation, periods 1983 to 1987 and 1989 to 1991 are used in various combinations. For cross-sectional variation, government employees with special pension plan are used as control group. The paper finds that a social security system crowds out household saving. Estimates show that the effect of Korea’s national pension on household saving ranges from -0.9 to -1.8 percentage points, and -1.4 percentage points on average. When the group-specific time trend is considered, the crowding-out effect is estimated as -3.4 percentage points to -9.3 percentage points, and -5.9 percentage points on average. The crowding-out effect might get larger as a social security system matures.

참고문헌 (Reference)

1 남광희, "공적연금이 민간저축에 미치는 영향" 한국경제연구학회 22 : 29-51, 2008

2 강성호, "공적연금의 민간저축 구축효과에 관한 실증연구: 가구특성별 접근" 한국은행 11 (11): 135-164, 2005

3 Krueger, A. B, "Workers’ Compensation Insurance and the Duration of Workplace Injuries" 1990

4 Gruber, J, "The Incidence of Mandated Maternity Benefits" 84 : 622-641, 1994

5 Saunders, P.J, "The Effect of Social Security on Personal and Private Saving in the Short Run and the Long Run: A Time-series Analysis" 32 (32): 2006

6 David, M, "The Effect of Social Security on Lifetime Wealth Accumulation and Bequests" 52 (52): 421-434, 1985

7 Lim, K.M, "The Effect of Social Security on Household Saving. in: Population Aging in Korea: Economic Impact and Policy Issues" Korea Development Institute 227-276, 2003

8 Bernheim, B. D, "The Economic Effects of Social Security - Toward a Reconciliation of Theory and Measurement" 33 : 273-304, 1987

9 Kotlikoff, L. J, "Testing the Theory of Social Security and Life Cycle Accumulation" 69 (69): 396-410, 1979

10 Engelhardt, G. V, "Tax Subsidies and Household Saving: Evidence from Canada" 1237-1268, 1996

11 Feldstein, M, "Social security and Private Saving: Reply" 90 (90): 630-642, 1982

12 Feldstein, M, "Social Security, Induced Retirement, and Aggregate Capital Accumulation: A Correction and Update" 1980

13 Feldstein, M, "Social Security, Induced Retirement, and Aggregate Capital Accumulation" 82 (82): 905-926, 1974

14 Feldstein, M, "Social Security and Saving: New Time-series Evidence" 49 : 151-164, 1996

15 Leimer, D. R, "Social Security and Private Saving: New Time-Series Evidence" 90 (90): 606-629, 1982

16 Congressional Budget Office, "Social Security and Private Saving: A Review or the Empirical Evidence"

17 Bernheim, B.D, "Social Security and Personal Saving: An Analysis of Expectations" 79 (79): 97-102, 1989

18 Gullason, E. T, "Social Security and Household Wealth Accumulation: Refined Microeconometric Evidence" 75 (75): 548-551, 1993

19 Feldstein, M, "Social Security and Household Wealth Accumulation: New Microeconometirc Evidence" 61 (61): 361-368, 1979

20 Koskela, E, "Social Security and Household Saving in an International Cross-section" 73 (73): 212-217, 1983

21 Barro, R. J, "Social Security and Consumer Spending in an International Cross-section" 11 : 275-289, 1979

22 Feldstein, M, "Social Security" 2001

23 Hubbard, R. G, "Personal Taxation, Pension Wealth, and Portfolio Composition" 67 (67): 53-60, 1985

24 Dicks-Mireaux, L, "Pension Wealth and Household Savings: Tests of Robustness" 23 : 115-139, 1984

25 Meyer, B. D, "Natural and Quasi-Experiments in Economics" 13 (13): 151-161, 1995

26 Feldstein, M, "International Differences in Social Security and Saving" 14 : 225-144, 1980

27 Diamond, P. A, "Individual Retirement and Savings Behavior" 23 : 81-114, 1984

28 Browning, M, "Household Saving: Micro Theories and Micro Facts" 34 (34): 797-855, 1996

29 Kim, K. S, "Household Saving Behavior in Korea" Korea Development Institute 1975

30 Park, J. K, "Declining Saving Rate: Macroeconomic and Microeconomic Evidences" Korea Institute of Public Finance 2000

31 Park, D. K, "A Study in the Saving Rate in Korea: Synthetic Cohort Anlaysis" Korea Institute of Public Finance 1997