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Byline: Kyo-seong Kim (1), Yongwoo Lee (2), Yu-jeong Lee (3) Keywords: Poverty; Income-maintenance policy; Public social expenditure; Hierarchical linear model (HLM); Hierarchical generalized linear model (HGLM) Abstract: This study aims to investigate factors contributing to poverty, one of the most significant social problems in Western societies. To this end, 13 countries that have made a variety of efforts to reduce poverty, and therefore experienced similar development processes related to welfare, were selected. To overcome the methodological limitations of previous studies, the study utilized a Hierarchical Generalized Linear Model to simultaneously analyze individual-level and state-level factors that might affect the poverty status of a household, employing household data from the fifth wave of Luxembourg Income Study and Comparative Welfare State data. By comparing the magnitude of individual- and state-level effects in the analysis process, the model can empirically illuminate which of the two levels is more responsible for households' destitution. Furthermore, by analyzing the level of and characteristics of poverty in each country, this study examines whether there are discrepancies in the level of poverty across types of welfare states and what factors contribute to these discrepancies. Author Affiliation: (1) Chung-Ang University, Seoul, Korea (2) Konkuk University, Chungju, Korea (3) Seoul Welfare Foundation, Seoul, Korea Article History: Registration Date: 01/03/2010 Accepted Date: 01/03/2010 Online Date: 13/03/2010

This article examines changes in economic welfare within Korea in terms of income, consumption, and poverty. Analyses of government statistics reveal that it has been extraordinarily successful in raising the average level of both income and consumption, while reducing the incidence of poverty during the last four decades. In reducing the unequal distribution of income during the same period, however, the country has been much less successful. In the aftermath of the 1997 economic crises, the level of poverty has risen due to sharp increases in unemployment. The lives of the poor are at risk since the social safety net system in Korea is only minimal. The heavy concentration of land and wealth in a few hands is a major obstacle to the further enhancement of the quality of economic life among the Korean people.