• Korean Journal of Social Welfare Studies
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• v.41 no.3
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• pp.185-212
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• 2010

This study simulates the effects of basic income on income redistribution in Korea, and compares the redistribution effects of basic income models with the effect of the current welfare system. Using the Korea Welfare Panel Study(2008), absolute/relative poverty rate, poverty gap ratio, gini coefficients are measured. As a result of simulation, the basic income models reduced poverty more effectively than the current system. And among the three basic income models, the basic income model combined with flat-rate tax reduced poverty more effectively. And the basic income model combined with progressive tax reduced inequality more effectively. The results of the study reported in this paper confirm the paradox of redistribution which suggest that the effect of universal welfare program on redistribution is the most noticeable.