Empirical Analysis of the Crowding Out Effect of the National Pension on Household Private Savings (in Korean)

This paper focuses on a type of individuals' economic behavior that National Pension System is likely to change, particularly their saving. This paper empirically analyzes the whole and different income groups' crowding out effect of the National Pension System(NPS) on household's non pension wealth by estimating Pension Wealth(PW) elasticity using the Korea Labor and Income Panel data(1999~2005). The estimation result shows that 10% increase in the PW decreases the household's non pension wealth by 1% and the lower income household is, the more degree of decreasing it is. This is to say that current National Pension would give a contribution to downward trend of private saving rate and produce large differences in saving rates across income groups since 1998 IMF Currency Crisis.