Social spending in Korea: can it foster sustainable and inclusive growth?

Authored by: Selim Elekdag , Dulani Seneviratne , Edda Zoli

Routledge Handbook of Sustainable Development in Asia

Print publication date:  June  2018
Online publication date:  May  2018

Print ISBN: 9781138182189
eBook ISBN: 9781351008204
Adobe ISBN:

10.4324/9781351008204-17

 Download Chapter

 

Abstract

Selim Elekdag, Dulani Seneviratne and Edda Zoli write in “Social spending in Korea,” that Korea faces two closely related challenges: sustaining economic growth against the backdrop of a rapidly aging population and ameliorating income inequality. Elekdag, Seneviratne and Zoli argue that a gradual increase in social spending could promote more sustainable and inclusive growth in Korea. In particular, simulation results suggest that social spending which supports labor market reforms can boost longer-term growth. However, despite rapid increases recently – albeit from a low base – there is still a social spending gap relative to Korea’s OECD peers. They find that because of several fiscal challenges in the coming decades, increases in social spending should be incremental, and would be usefully guided by a longer-term fiscal framework.

 Cite
Search for more...
Back to top

Use of cookies on this website

We are using cookies to provide statistics that help us give you the best experience of our site. You can find out more in our Privacy Policy. By continuing to use the site you are agreeing to our use of cookies.