'Seoul Cheongnyeon Allowance' Participants Show More Active Economic Activities and Higher Happiness Levels

Comparison Survey of 400 Participants and Non-Participants in Seoul Last Year
Higher Social Trust, Second Chance Opportunities, and Happiness... "Proof of Youth Allowance Effect"

[Asia Economy Reporter Jo In-kyung] A survey has found that young people participating in the 'Seoul Youth Allowance' are more actively engaged in economic activities such as employment and entrepreneurship compared to non-participating youth. The Seoul Metropolitan Government claims that the program's effectiveness is proven as the participation group also showed higher positive rates in non-economic aspects such as social trust, happiness, and opportunities for recovery.

On the 9th, the Seoul Metropolitan Government conducted a survey last year targeting 200 youth allowance participants and 200 non-participants. The results showed that 37.5% of the participants responded that they were engaged in economic activities this year, compared to 31.0% of non-participants, a 6.5 percentage point difference. The rate of those who had been economically active this year but have since stopped was also higher in the participant group at 18.0%, compared to 11.0% in the non-participant group, a 7.0 percentage point difference.

Accordingly, the combined rate of those who are currently or have been economically active this year was 55.5% in the participant group and 42.0% in the non-participant group, a 13.5 percentage point difference. This means that more than 5.5 out of 10 participants have worked or are working this year.

In the youth guarantee program 'Mission local' conducted in France in 2018, the employment rate 10 months after participation was 39.0% for participants and 27.5% for non-participants, an 11.5 percentage point difference. The Seoul Metropolitan Government explained that the results of the Seoul Youth Allowance survey were similarly derived as in the French case.

The Youth Allowance showed significant effects not only in economic areas but also in non-economic and qualitative aspects. Compared to non-participants, participants scored 9.4 points higher in 'alignment between current work and goals,' 11.1 and 9.7 points higher in 'sufficient social relationships' and 'presence of trustworthy people around,' respectively, 10.9 points higher in 'opportunities for recovery,' and 7.2 points higher in 'subjective happiness.' Participants also highly evaluated the Youth Allowance in terms of 'improvement of living conditions (84.4 out of 100 points)' and 'help in preparing for employment and entrepreneurship (75.6 points).'

Youth who did not participate in the Youth Allowance were also well aware of the program. The recognition rate of the Youth Allowance among non-participants was 76.0%, and the degree to which they believed the allowance would help with employment and entrepreneurship was 61.4 points. However, no clear difference in improvement effects was found between participants and non-participants in the mental health area, leading to suggestions that separate policies to strengthen mental health support for youth, including psychological quarantine for COVID-19 and promotion of youth emotional well-being, are necessary.

Launched in 2016, the Seoul Youth Allowance program has supported a total of 53,589 people over five years through this year and will continue next year. It provides a one-time support opportunity to unemployed youth aged 19 to 34 residing in Seoul who are at least two years post-graduation.

This content was produced with the assistance of AI translation services.