This paper empirically analyzes economic impacts of policy instruments and suggests policy alternations to improve the urban poor"s alternatioes to improve the urban poor"s standard of living in Korea. By estimating a joint decsim model of hours of work and housing demand utilizing a sample of 270 urban poor housholds, the study finds that the efects of policies dre diverse. The dncome subsidy to msst effectwe in increasing comsumption while the wage increase is least likely to decrease hours of work. Policy suggection are firstly that policies to ward the urban poor should hot be overlapping or contradictory, and secondly that the policies should be able to increase the poor"s wage earning abiliby.