- Volume 39
This study is an empirical research to analyze how many private income transfers in Korea decrease poverty rate, to compare the effects of private income transfers' decreasing poverty rate with income classes. This study has utilised the Family Income and Expenditure Survey to estimate the poverty ratio in urban areas and Unemployment Household Survey which Korea Institute for Health and Social Affairs has investigated at 1998. Majour findins are these. First, Sizes of private transfers incomes are much than that of public transfers incomes. The rates in receiving private transfers income are ten times higher than that in receiving public transfers income among urban worker's household. The mean of private transfer income are about six times larger than that of public transfer income among urban worker's household. Second, the effects of private income transfers' reducing poverty rates are not large. After private transfers, urbarn workers' households are about 10 per cent away from its poverty line, and unemploy households are only 3 per cent away from its poverty line. Third, especially, private income transfers are hardly reducing poverty rates among extreme poverty class. After private transfers, urban workers' households which their incomes are within low 5%, are not away from its poverty line at all.