Building Markets: Distributional Consequences of Social Policy in East Asia (New Horizons in Social Policy series)

237 Pages·2022·4.335 MB·English

by  Gyu-Jin Hwang

Building Markets
NEW HORIZONS IN SOCIAL POLICY
Series Editors: Patricia Kennett and Misa Izuhara, University of Bristol, UK
The New Horizons in Social Policy series captures contemporary issues and
debates in social policy and encourages critical, innovative and thought-provoking
approaches to understanding and explaining current trends and developments in the
field. With its emphasis on original contributions from established and emerging
researchers on a diverse range of topics, books in the series are essential reading for
keeping up to date with the latest research and developments in the area.
Titles in the series include:
Social Services Disrupted
Changes, Challenges and Policy Implications for Europe in Times of Austerity
Edited by Flavia Martinelli, Anneli Anttonen and Margitta Mätzke
Social Policy After the Financial Crisis
A Progressive Response
Ian Greener
Social Policy in the Middle East and North Africa
From Social Assistance to Universal Social Protection
Edited by Rana Jawad, Nicola Jones and Mahmood Messkoub
The Small Welfare State
Rethinking Welfare in the US, Japan, and South Korea
Edited by Jae-jin Yang
Poverty, Crisis and Resilience
Edited by Marie Boost, Jennifer Dagg, Jane Gray and Markus Promberger
The European Social Model and an Economy of Well-being
Repairing the Social Fabric of European Societies
Giovanni Bertin, Marion Ellison and Giuseppe
Challenges to the Welfare State
Family and Pension Policies in the Baltic and Nordic Countries
Edited by Jolanta Aidukaitė, Sven E.O. Hort and Stein Kuhnle
Poverty and Inequality in East Asia
Work, Family and Policy
Edited by Inhoe Ku and Peter Saunders
Building Markets
Distributional Consequences of Social Policy in East Asia
Gyu-Jin Hwang
Building Markets
Distributional Consequences of Social Policy in
East Asia
Gyu-Jin Hwang
School of Social and Political Sciences, University of Sydney,
Australia
NEW HORIZONS IN SOCIAL POLICY
Cheltenham, UK • Northampton, MA, USA
© Gyu-Jin Hwang 2022
Cover image: Steve Johnson on Unsplash.
All rights reserved. No part of this publication may be reproduced, stored in a
retrieval system or transmitted in any form or by any means, electronic, mechanical or
photocopying, recording, or otherwise without the prior permission of the publisher.
Published by
Edward Elgar Publishing Limited
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Cheltenham
Glos GL50 2JA
UK
Edward Elgar Publishing, Inc.
William Pratt House
9 Dewey Court
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Massachusetts 01060
USA
A catalogue record for this book
is available from the British Library
Library of Congress Control Number: 2022944607
This book is available electronically in the
Sociology, Social Policy and Education subject collection
http://dx.doi.org/10.4337/9781789901085
ISBN 978 1 78990 107 8 (cased)
ISBN 978 1 78990 108 5 (eBook)
EEP BoX
Contents
List of figures vi
List of tables vii
Acknowledgements viii
List of abbreviations ix
1 Introduction: doing social policy, East Asian style 1
2 Building markets 5
3 The strategy for growth 22
4 Cash transfers 50
5 Healthcare 78
6 Education 101
7 Housing 126
8 Family policy 146
9 Conclusion: taming the untamed 170
Bibliography 182
Index 218
v
Figures
2.1 Gross domestic savings (% of GDP) 7
2.2 Insurance spending, direct gross premiums, 2019 (% of GDP) 14
2.3 The size of the welfare state and redistribution, 2018 15
3.1 Public social expenditure around 2000 and 2015 (% of GDP) 44
3.2 Middle 40 per cent national income share: pre-tax national
income 47
4.1 CSSA recurrent expenditure, Hong Kong 73
5.1 Health expenditure versus infant mortality rate, 2019 79
5.2 Healthcare resources 79
5.3 Out-of-pocket payments and public health expenditure (as
a percentage of current health expenditure) 100
6.1 Relationship between life satisfaction and after-school lessons 124
7.1 Housing ownership rate (own outright plus owner with
mortgage), 2018 128
7.2 Residential property assets: public versus private housing 140
8.1 Types and numbers of childcare 155
9.1 Income inequality in Taiwan: disposable income 180
9.2 Income inequality, before and after government transfers
and tax, Singapore 181
vi
Tables
2.1 Expenditure by functions of government, 2019 (% of total
expenditure) 19
3.1 Effect of tax and social transfer, Gini coefficient 41
3.2 Income inequality: pre-tax national income, adults (%) 46
4.1 Unemployment benefits in Japan, Korea and Taiwan 62
4.2 Sources of income, current transfer receipts, 2019 (five
equal divisions of recipients according to disposable
income), NT$, % 69
4.3 Type of old-age pensions 75
5.1 Contribution rates by population groups, national health
insurance, 2020 89
5.2 The share of monthly household healthcare expenditure
(out of disposable income) 92
6.1 Government expenditure on education 118
6.2 PISA performance, mean score, 2000–18 121
7.1 Households living in various types of housing by lowest
and highest income group 143
8.1 Types of kindergartens (% of total enrolment) 163
8.2 Statutory maternity leave entitlements 168
9.1 Number of homeless people 175
vii
Acknowledgements
My research interests in the study of social policy in East Asia have developed
over time stretching beyond a particular national context and a specific area of
social policy. This book is the product of my rather ambitious project to cover
as many social policy areas as possible in a full suite of East Asian miracle
economies. Perhaps not surprisingly, it has taken much longer than I initially
thought. And I am very grateful for the understanding and generosity of the
publisher to allow me more time and space.
I am also grateful to all my colleagues and friends both here in Australia
and elsewhere around the world for their help, support and encouragement.
My special thanks go to my colleagues here in the University of Sydney for
their non-stop encouragement. I am also grateful to the members of East Asian
Social Policy Research Network for their listening and advice over the years
regarding the various aspects of the book.
As this book has been long overdue, my family had to endure my grumpi-
ness much longer than they would have liked. For that, I sincerely apologise.
I love you so very much and this book is dedicated to you all.
Part of Chapter 5 appeared in Social Policy and Society (2021), 20 (4),
599–621, entitled ‘Health policy in East Asia: objectives, priorities and per-
formance’ and I appreciate the willingness of Cambridge University Press to
allow the publication of its revised version here.
viii
Abbreviations
AAT Academic Aptitude Test
AST Advanced Subjects Test
AULHSO Act on the Upper Limit of Housing Site Ownership
CAP Comprehensive Assessment Programme
CEEC College Entrance Examination Centre
COVID-19 Coronavirus Disease 2019
CPF Central Provident Fund
CSAT College Scholastic Ability Test
CSSA Comprehensive Social Security Assistance
DPP Democratic Progressive Party
DSS Direct Subsidy Scheme
ECEC Early Childhood Education and Care
EDB Economic Development Board
EHG Enhanced CPF Housing Grant
ESCS Economic, Social and Cultural Status
FDI Foreign Direct Investment
FYFD First-year First-degree
GCE O-level General Certificate of Education Ordinary level
GDP Gross Domestic Product
GEP Gifted Education Programme
GHLC Government Housing Loan Corporation
GLCs Government-Linked Corporations
GNP Gross National Product
GSAT General Scholastic Ability Test
HDB Housing Development Board
HOS Home Ownership Scheme
ILO International Labour Organization
ix