A Study on Introduction of Benefit Sharing in Seoul
Submitted by siadmin on Wed, 02/22/2017 - 16:35Abstract
Since the economic crisis late 1990’s, the inequality between large corporations and small ones has been widening in terms of corporate income and employee wage. This weakening of small firms has shrunken their R&D investment, hurting their competitiveness. On the other hand, large corporation have enjoyed lucrative profits, putting aside a huge cash in reserve.
This study analyzes excess profit sharing or performance benefit sharing to address this exacerbating inequality. Currently, there is no legal framework on which public entities can employ excess profit sharing even if they want. Instead, they take performance benefit sharing, and thus help small firms to strengthen R&D capability and gives additional cashes in aid if they satisfy the service standard that large corporation lay out. This cash subsidy can lead to wage increase for employees in small firms, partly narrowing wage gap between large and small corporations.
This study present how public entities that have not yet performance benefit due to lack of the appropriate legal clause use it to help small firms and seek for flourishing together.
Contents
01 Introduction
1_Background and Purpose of the Study
2_Main Contents and Research Methods
02 Public Welfare Expenditures and Prospect of Changes in Korea
1_Current Public Welfare Expenditures
2_Changes of Welfare Demands
3_Condition of Public Finances
03 Preceding Experiences of Advanced Welfare States
1_Social Policy Paradigm Changes
2_Review of Social Investment Strategies
3_Trends of Welfare Reforms
04 Policy Directions for a Sustainable Welfare State
1_Socio-economic Performances by the Type of Welfare State
2_Reasonable Level of Public Welfare Expenditures and Tax Revenues
3_Restructuring Welfare Policy Compositions
05 Policy Agendas for the Seoul Metropolitan Government
1_Review of Public Welfare Expenditures in Seoul
2_Strategies to Maintain the Sustainable Welfare System