This file photo shows a relatively empty infant unit at a Seoul hospital. (Yonhap)
SEOUL, Jan. 16 (Korea Bizwire) – The childbirth subsidies given out by local authorities nationwide have had a minimal effect in regions with a shrinking population, posing a financial risk, a report showed Sunday.
A study recently published by the Korea Institute for Health and Social Affairs made a comparison of childbirth subsidies distributed in different regions of the country, sorted by the crude birth rate and total fertility rate.
The study showed that the crude birth rate jumped in regions like northern Gyeonggi Province, Seoul, and the coastal and inner regions of the Honam (Gwangju, South Jeolla Province and North Jeolla Province) when childbirth subsidies were higher.
In contrast, regions like Gangwon, North Chungcheong and South Chungcheong provinces and the coastal and inner regions of South Gyeongsang Province barely had any correlation between the subsidies and the crude birth rate.
Specifically, the estimated coefficient stood at a maximum of 0.248 in the northern Gyeonggi Province and others, while other regions like Gangwon stood at -0.063.
The correlation between subsidies and total fertility rate, while differing by region, also had a similar pattern. Depending on the region, the coefficient ranged from -0.057 to 0.368.
“Considering that the amount of childbirth subsidies was similar across all regions, regardless of their effects on birthrate, they may pose a risk to local finances,” said Jang In-soo, an associate research fellow at the Korea Institute for Health and Social Affairs.
H. M. Kang (hmkang@koreabizwire.com)
