Health Policy Manag.  2020 Mar;30(1):92-99. 10.4332/KJHPA.2020.30.1.92.

The Effect of Income Support Allowance for Care Workers on Their Wage Increase

  • 1Health Insurance Research Institute, National Health Insurance Service, Wonju, Korea
  • 2Department of Health Administration, Yonsei University College of Health Sciences, Wonju, Korea


The purpose of this study is to analyze the effect of the income support allowance policy for the care workers on wage level.
The analysis data was constructed using database (DB) of long-term care institution, DB of long-term care personnel status, and DB of health insurance qualification and contribution possessed by National Health Insurance Services. We analyzed the wage status of care workers 2009 to 2016 through basic analysis. We used the difference-in-difference analysis method for the workers who worked in the same institution from 2012 to 2013, The effects of the income allowance policy on wage increase were analyzed.
As a result of the net effect of the income support allowance policy, the monthly average wage of the care worker increased by 25,676 won and the hourly wage increased by 478 won. As a result of the analysis, it can be confirmed that the income support allowance policy has achieved some of the goals of raising the wage level of the care workers, and the effect of raising wages for other occupations in the long-term care business can be confirmed.
The low wage problem of long-term care workers such as care workers is not the only problem in Korea. In other countries, there are various wage support policies for employees. In particular, it is necessary to refer to the improvement in the treatment of care workers in Japan and wage pass-through in the United States. In addition to wages, there is a need to promote policies to provide employment motivation through efforts to improve their social status and improve their job status and career development for employees in long-term care facilities.


Care worker; Wage of care worker; Care worker income support allowance; Difference in difference
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