Human capital and welfare receipt among North Korean defectors in South Korea

Abstract

Using multinomial logistic regressions, this study examines whether human capital accumulated in North Korea (NK) or South Korea (SK) is associated with decreases in welfare receipt among North Korean Defectors (NKDs) in SK. Human capital is measured by (1) (higher) education in NK or SK, (2) work experience in NK or SK, and (3) participation in the employment support programs in SK. This study shows that there are two ways to ensure the economic well-being of NKDs: through employment and marriage. Removing the confounding effect from marriage, it suggests that higher education in NK is associated with decreases in full receipt of welfare and that both blue-collar and white-collar job experience in SK is associated with decreases in both partial and full receipt. It also suggests that license acquisition support is associated with decreases in both partial and full receipt. These findings imply that to facilitate the economic adjustment of NKDs, the government needs to focus on accumulating the human capital of NKDs, mostly without higher education in NK, through work experience in SK.