Pro-work reforms to the settlement support system and the economic adjustment of recipients: Evidence from South Korea

Abstract

This study examines the effects of the pro-work reforms to South Korea's North Korean Defectors Settlement Support System (NKDSSS) on the economic adjustment of North Korean Defectors (NKDs) in the country. It analyzes data from the 2010 National Survey of Domestic Violence: NKDs, using a regression discontinuity design. The study finds that the reforms did not affect changes in the economic adjustment of NKDs, measured by employment, household income level, a rate of cash transfer as the main source of income, and welfare receipt. The findings of this study suggest that there are no significant differences in the economic adjustment outcomes of Unconditional Cash Transfers and Conditional Cash Transfers. It also implies that for the pro-work reforms to be effective to meet the changing needs, there should be rigorous policy evaluations for its reforms to improve the NKDSSS.