Social Sciences
3 years ago

New social policies reduce income inequality without harming traditional welfare systems.

한국정책학회 춘계학술발표논문집
Distributive impact of Active labour market policy: Focusing on relationship between `old` and `new` welfare institution
장익현

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The article looks at how new social policies affect income inequality. They studied Active Labour Market Policies (ALMPs) in 21 countries from 1985 to 2011. The results show that more spending on ALMPs can reduce income inequality. However, if unemployment benefits are based on a targeted or flat-rate system, it can increase income inequality. This means that new policies can work well with traditional welfare systems if they are well-designed.