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Limited Income Mobility in Korea

Author

Listed:
  • Hyungna Oh

    (Kyung Hee University)

  • Yun Jeong Choi

    (Yonsei University)

Abstract

Using the Korea Labor and Income Panel Study from 1998 to 2010, we measure income mobility and determinants of income ranks and mobility. Empirical outcomes reveal that income mobility is quite limited for both the poorest and the richest income group households. Moreover, a macro economic shock had heterogeneous impacts on each income group and the low-income class was highly vulnerable to it. Given the long-lasting impacts of early stage factors and initial endowment on income, and the existence of senior poverty, this paper calls for policies to support citizens suffering from illness, family breakdown, poor initial conditions, and aging.

Suggested Citation

  • Hyungna Oh & Yun Jeong Choi, 2014. "Limited Income Mobility in Korea," Working papers 2014rwp-64, Yonsei University, Yonsei Economics Research Institute.
    • Handle: RePEc:yon:wpaper:2014rwp-64
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    References listed on IDEAS

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    More about this item

    Keywords

    Intragenerational mobility; income elasticity; poverty; Korea;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • I30 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General

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