The Korean Journal of Economic Studies
Effect of the Social-Distancing Policy on Welfare of Households with or without Children
Soohyon Kim (Chonnam National University)Year 2023Vol. 71No. 1
AbstractThis paper measures the household welfare changes caused by the outbreak of COVID-19 and subsequent social-distancing policy. The sample households are grouped by income and we compare the welfare changes among the households according to the presence or absence of minor children. We use 17th, 23rd, and 24th Korea Labor and Income Panel Study (KLIPS) to analyze household consumption, leisure, and welfare. The results show that the welfare changes measured by the consumption-equivalent welfare comparison worsened after the social-distancing policy for the households with children, particularly for the 2nd to 4th quintile households. Considering this fact, while the government’s quarantine policies such as social distancing are evaluated as successful, it would have been more desirable if detailed policy considerations could be made to prepare customized policies for each social class in this area.