The Korean Journal of Economic Studies
Measuring the Effects of A Social Insurances Subsidy Program (Duru-Nuri Program): An Application of
Gyeongjoon Yoo (Korea University of Technology & Education), Changhui Kang (Chung-ang University), Paul Choi (Korea Development Institute)Year 2016Vol. 64No. 1
AbstractThis paper evaluates effects of the Duru-Nuri Program (a social insurancessubsidy program of the Korean government for low-wage workers) on aworker’s probability to join the national employment insurance (EI) andnational pension system (NPS), and employment. Estimates using thedifference-in-differences method suggest that its pilot program increased thenumber of the EI subscribers by 2.4% and that of the NPS subscribers by3.1%, while it failed to affect employment. The main program implementedfrom July 2012 increased the number of the EI subscribers by 2.68% and thatof the NPS subscribers by 2.04%, while it had no effect on employment. The Duru-Nuri Program is unique in that it has adopted an experimental design ofthe modern program evaluation literature, making possible a scientificevaluation of the performance of the program and offering a good guideline forthe design of micro-level programs of the government.