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Changes in household poverty among South Korean young adults: Decomposition analysis for 1995, 2006 and 2016

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  • Geumsun Byun

Abstract

This study analysed the causes behind changes in the poverty rate among young South Korean households, using the 1995, 2006 and 2016 Household Income and Expenditure Survey. Labour market instability has intensified since the Asian economic crisis of 1997. This has increased the risk of poverty among young people who lack financial assets and must obtain economic security through work. The poverty rates among people aged 18–29 have steadily increased. Using Oaxaca–Blinder decomposition, this study evaluated the contribution that characteristics and structure make to poverty rate changes. The study found that the poverty rate was lower in households with a higher level of education and in households with fewer members. The study also found that the poverty rate was higher in female‐headed households and in households where fewer of its members were employed. Furthermore, the poverty rate was found to have increased among the younger population in general. These findings indicate that social policies should take into consideration the changing life circumstances of young adults.

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  • Geumsun Byun, 2020. "Changes in household poverty among South Korean young adults: Decomposition analysis for 1995, 2006 and 2016," International Journal of Social Welfare, John Wiley & Sons, vol. 29(2), pages 179-191, April.
    • Handle: RePEc:wly:injsow:v:29:y:2020:i:2:p:179-191
    DOI: 10.1111/ijsw.12391
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