This study problematizes the lack of appropriate action by Korean Social security system against the increasing social risks of middle- and old-aged self-employed workers, analyzing the distinctive characteristics of their working history from wage wo...
This study problematizes the lack of appropriate action by Korean Social security system against the increasing social risks of middle- and old-aged self-employed workers, analyzing the distinctive characteristics of their working history from wage workers, as well as their effect on the risk of zero or low pension benefits. This research follows the definition of self-employed by Economically Active Population Survey in Statistics Korea. Targeting those who have experienced self-employment at least once over their lifetime according to the working history data in Korean Retirement and Income Study. For analysis of their enrollment and Receiving National Pension, working history, this study utilizes descriptive statistics, t-test, chi-square test, and binary logistic regression. The result shows that factors such as gender, age, marital status, home ownership, industries (whether in accommodation and restaurants or agriculture and fishing), and income levels are the common variables that affect the likelihood of enrollment and Receiving National pension. In the case of working history, the focus of this research, those who have experience in permanent worker displayed higher likelihood of enrollment, while those who had been temporary and daily workers were less likely to receive. In other words, the differences in their working history lead to significant gaps in the rate of enrollment and Receiving national pension, which derives from the instability and low-income levels of the self-employed. Based on the findings of this study, a protective measure is urgently necessary to alleviate such social risks. We suggest extending the current social insurance subsidies (offered to low-income wage workers, agriculture, and fishing industries) to the low-income self-employed workers who earn less than 40 million won, and gradually expanding to those lower than the 80 million won mark.