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http://dx.doi.org/10.7466/JKHMA.2014.32.5.125

Analysis of Household Income and Expenditure of Households with a Negative Cash Flow Across Income Groups in 2000, 2005, and 2010  

Lee, Jonghee (Department of Home Economics Education, Korea University)
Yang, Sejeong (Department of Consumer & Housing Studies, Sangmyung University)
Publication Information
Journal of Families and Better Life / v.32, no.5, 2014 , pp. 125-143 More about this Journal
Abstract
The purpose of this study was to gain a better understanding of households with a negative cash flow. The Household Budget Survey conducted in 2000, 2005, and 2010 by the Bureau of Statistics in South Korea were used for this study. The households used in this study were divided into four groups according to their income levels; they were categorized the lowest, low, middle, and high income groups. This study made several findings regarding households with a negative/positive cash flow. Firstly, the demographic and economic characteristics were different between those who have a negative cash flow and those with a positive cash flow. A female household head, a household head age 65 and older, a household head with a lower educational attainment, an unemployed household head, and the presence of a child/children in schools were related with the household deficit. Secondly, the households with a positive cash flow had a higher income level compared to the households with a negative cash flow, while the households with a negative cash flow had a much higher consumption level compared to the households with a positive cash flow. Thirdly, the household deficit to total income ratio of the lowest income group was higher when compared to any other income group. Lastly, the multivariate statistics showed that households including a child/children in schools are more likely to be a household with a negative cash flow. Especially, the expenditures on education and transportation were related with the likelihood of a household deficit.
Keywords
household with a negative cash flow; household expenditure; household income;
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