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http://dx.doi.org/10.14578/jkfs.2019.108.3.392

Analysis of Forestry Household Income Inequality using Gini Coefficient Decomposition by Income Sources  

Kim, Eui-Gyeong (Department of Forest Environmental Resources, Gyeongsang National University, (Institute of Agriculture and Life Science))
Kim, Bo-Kyeong (Department of Forest Resources, Gyeongsang National University)
Kim, Dong-Hyun (Division of Global Forestry, National Institute of Forest Science)
Publication Information
Journal of Korean Society of Forest Science / v.108, no.3, 2019 , pp. 392-404 More about this Journal
Abstract
The purpose of this study was to identify the impact of various income sources on income inequality of forestry households. Data from the Forestry Household Economy Survey from 2013-2016 were analyzed using the Gini coefficient decomposition method via income source. In particular, the income inequality analysis of forestry households was broken down into separate analyses based on group, i.e., the whole of forestry households and the five income quintile classes. The results of the analyses showed that income inequality of forestry households is primarily affected by forestry and nonforestry incomes and income quintile class. Moreover, income inequality of the highest income quintile class was largely affected by forestry income compared with other sources of income, whereas that of other income quintile classes was largely affected by nonforestry income. Therefore, in order to reduce income inequality in forestry households, it is necessary to increase the proportion of forestry income in the lower four quintile classes. Given that the income of the lowest quintile class is negative, it is necessary to devise ways to improve the proportion and quantity of forestry income. At the same time, as forestry income increases, a policy alternative is also required to improve inequality in forestry income.
Keywords
income inequality; Gini coefficient decomposition; forestry household; income source;
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