• Economic Analysis
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• v.27 no.3
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• pp.61-96
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• 2021

This study is to structurally examine the regional income disparity in Korea. It measures the regional income inducement by household consumption expenditure per unit income, and the regional interdependency of income using 2005 and 2015 Regional Input-Output Tables of 16 provincial regions of Korea. The results are as follows. Firstly, the income inducement by consumption expenditure per unit income decreased overall, mainly due to the decrease in the income inducement of other regions than due to that of their region. Secondly, in many regions, the inter-relational income dependency per unit income decreased also, this too, mainly due to the decrease in the income transfer to other region. And, the income inducement effects of consumption expenditure per unit income of Seoul and Gyeonggi, which occupy a large portion of the Korean economy, were lower than that of other regions, but took the largest portion of income inducements generated by other regions as well as by themselves and absorbed the income transfers from other regions the most. The higher income inducement and income absorption in Seoul and Gyeonggi by consumption expenditure of other regions were mainly because of the high share in service of their consumption structure, the progress in tertiarization of their industrial structure, and the high wage portion. These results also mean that viewed from the regional interdependency of income, the income of Seoul and that of Gyeonggi are highly dependent on the income of other regions. Especially, Gyeonggi which leads the overseas exports of high-tech based manufactured products, has other external factors that contribute to their high income inducement, whereas, Seoul which shows high income absorption using its inter-relations with other domestic regions based on the services, has an income-generating structure that is sensitive to other regions' economic situation. Amid overall declines in regional income inducements and in income transfers, and continuing concentrations into Seoul and Gyeonggi regions, to alleviate the regional disparity, the regional industry policies should, rather than benchmarking the policies of the two concentrated regions, enhance their own inter-regional relationships by strengthening the comparative advantage of their regionally specialized industry.

• Journal of Digital Convergence
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• v.15 no.11
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• pp.221-229
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• 2017

The purpose of this study is to find out ways to enhance corporate value by using more efficient use of non-reflux Income which is commonly considered in existing corporate income tax refund and newly introduced investment and mutual aid promotion tax. Specifically, we analyzed the effect of income tax return income and income tax return on wages and fixed - asset investments, which are commonly considered in the two tax systems, on firm value. As a result of the analysis, it was confirmed that short-term internal reserves and income reflux activities had a negative impact on firm value, and long-term internal reserves and income reflux return had positive effects on firm value. It is recommended not to formulate uniform criteria such as the ratio of income refund activity to the contents of tax, but to apply the tax refund to the internal taxation system and the taxable income source.

• Korea journal of population studies
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• v.26 no.1
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• pp.79-113
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• 2003

This study is intended to explore an income level necessart for the old-age by income Status. Firstly, it is verified whether there is significant difference between old-age and working age or not. Secondly, if their difference is found, it will be identified that it is determined by certain factors. Thirdly, it is brought out needful income level for the old-age living through analysing old-age consumption expenditure level over working age. The results in this research are as follows. Firstly, there is a significant difference between old-age and working age. Secondly, the major factors which generated difference between old-age and working age consumption expenditure are income, household size, and age. Thirdly, the income level necessary for oldage living is on average 61 %. By income status, it is 90-100% for low income status, 60-70% for middle income status, 50-60% for high income status.

• The Journal of the Korea Contents Association
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• v.21 no.12
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• pp.906-917
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• 2021

This study focused on real estate rental income, which is being interested as a means of preparing for old age in the age of low growth and aging. Rental income is seen to function as a safety net of society at a time when it is necessary to live a difficult old age due to the disconnection of income and the extension of the average life span. Therefore, this study conducted the following study on 1,025 households that own rental real estate nationwide. First, the relationship between the characteristics of the household of the rental real estate owner and the real estate rental income was analyzed, and second, it examined whether there is a difference in rental income between the group that engages in income activities other than rental income and the group that only has rental income without income activities. As a result of the analysis, among the demographic and sociological characteristics, gender and spouse were identified as significant variables in rental income. Among the economic characteristics, income and total debt were found to be significant variables. In the case of income activities, rental income was low, and rental income was high when the total debt was high. However, if interest rates rise and the economic recession is prolonged due to unpredictable causes, the owner may suffer from double-use. In preparation for this, it is necessary to review real estate policy alternatives such as easing the period of real estate holdings.

• Korean Journal of Social Welfare
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• v.54
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• pp.321-345
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• 2003

Aggregate income stability depends heavily on labor market institutions that stabilize or de-stabilize earnings. But, with the expansion of sate welfare programmes, public income transfers are also important sources of income stability for individual and families. Moreover, income stability is determinant factor of individual and family well being, there are another strategies of income stability in society. Family-based and community-based strategies are particularly important. Accordingly, the distribution of income stability in a given society depends on such institutional arrangements as market, family, state, and community. The purpose of this study is to analyse the income stabilizing role of family, state, and community. I found that stabilizing effect of the family and community was very strong in Korea. When institutional features of labor market and the state leave individuals exposed to market risk, they may be respond by relying more on family-based or community-based strategies of income stabilization. But, I can't deny the possibility of an inadequacy of these strategies in according to the rapid changes of family structures and informal networks. Therefore, state-based strategies of income stabilization should be more strengthened in Korea.

• KDI Journal of Economic Policy
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• v.31 no.1
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• pp.207-237
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• 2009

One of the main problems in Korea's public assistance program, the NBLS (National Basic Livelihood Security), is that the loophole of welfare system is continuously growing. Living wage program is the largest sub-program of the NBLS, and the most important determinant of amount of living wage for each beneficiary is the level of reported income. Therefore, accurate and effective income detection is essential in improving policy effects and furthermore reducing the leakage of wage expenditure as beneficiaries always have an incentive to underreport their income. Since most of them do not pay income tax, the welfare authority should exert an independent effort to effectively detect their income. Considering that living wage is a special kind of income tax of which marginal tax rate is -1, one can apply a classical theory of tax evasion to understand illegal or excessive receipt of living wage caused by income underreporting. Utilizing a classical theory given by Alingham and Sandmo (1972), this paper provides a theoretical analysis of the optimal income reporting of the beneficiary. Then an optimization problem is constructed from the government's viewpoint to derive optimal income detecting device (auditing). This paper proves that cut-off discriminated auditing outperforms random auditing and cut-off auditing which implies if the government assigns a positive audit probability to every reported income less than a certain level and the probability is inversely proportional to the level of reported income, it can minimize underreporting and then gradually reduce the leakage of wage expenditure.

• Journal of Labour Economics
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• v.28 no.1
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• pp.135-156
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• 2005

This paper analyzes the distribution and determinants of income of the self-employed, in comparison with salaried workers. Relative to salaried workers, in general, the self-employed tend to have a larger dispersion of income and larger heterogeneity. In this regard, the quantile regression analysis was used, along with a typical OLS regression analysis. According to the empirical findings, the income of the self-employed is larger than that of salaried workers, and this difference is larger for higher income group. The marginal effect of education is larger for higher income groups for both the self-employed and salaried workers, implying the return on education is larger for higher income groups. In contrast, for self-employed women, the marginal effect of education is smaller for higher income groups. Put differently, the return on education in the labor market is larger for salaried workers and self-employed men of high income groups as compared to those of low income groups, whereas the opposite holds for self-employed women.

• 한국노년학
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• v.31 no.2
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• pp.321-341
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• 2011

The purpose of this study is to examine income composition elements, poverty rate, and the effects of the transfer income on poverty decrease comparing grandparents-grandchildren households with living alone, couple, and living with adulthood children. Data come from the first(2005) and the second(2007) Korean Retirement and Income Study(KReIS) and the effects of poverty decrease is examined through reconstruction of LIS income definition. The main findings are as follows. First, the total income of the grandparents-grandchildren in 2006 is the lowest and about one-fourth of the households living with adulthood children. Second, the labor income of all households are increasing but the only grandparents-grandchildren's labor income is decreasing. Third, three of ten in grandparents- grandchildren households are in poverty, the poorest households's type is the grandparents-grandchildren in 2006. Fourth, four of ten in grandparents-grandchildren is able to escape poverty after including private and public transfer income. Especially, the effects of the public transfer income in grandparents-grandchildren households is lower in 2006 than in 2004, thus the role of public income security is strongly needed. Existing research was that the poorest type among the elderly group was the living-alone households, but this results show that grandparents -grandchildren households are the poorest group. Thus, income security policy is highly needed for poor skipped-generation households.

• Korean Journal of Social Welfare
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• v.59 no.1
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• pp.199-221
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• 2007

This study examines the conditions and causes of income inequality and seeks assignments for mitigating income inequality. An analysis of the conditions and causes of income inequality is summarized as follows. First, income inequality, which rapidly increased after the economic crisis, increased and reduced repeatedly during 1999-2004, and remained a level in 2005 as high as that of the year directly after the economic crisis. Second, an analysis of the causes of income inequality by utilizing the long-term data(1985-2004) shows that unemployment rate, nonstandard employment rate, and the rising rate of land prices positively affect income inequality. Third, an analysis of the causes of income inequality by utilizing the data before and after the economic crisis(1995-2004) demonstrates that unemployment rate, nonstandard employment rate, and the workers' income ratio between large enterprises and small enterprises positively affect income inequality. Fourth, the rising rate of land prices which significantly affects income inequality in the data of 1985-2004 does not affect income equality in the data of 1995-2004, and the workers' income ratio between large enterprises and small enterprises which does not affect income inequality in the data of 1985-2004 significantly affect income equality in the data of 1995-2004. These results suggest several implications for mitigating income inequality. First, alternative plans to reduce unemployment rate must be prepared. Second, policies to reduce nonstandard employment rate should be established. Third, programs to stabilize or lower the land prices must be deliberated. Fourth, a master-plan to support small to medium enterprises must be carried out in order to reduce the wage differentials between large enterprises and small to medium enterprises.

• Journal of the Korea Academia-Industrial cooperation Society
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• v.16 no.11
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• pp.7820-7830
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• 2015

Korean households' demand for food consumed away from home is on the steady increase. The ratio of eating-out expenditure of the household income, however, tends to decrease recently irrespective of income groups. This paper, therefore, aims to analyse the food-away-from-home expenditures of salary and wage earners' households by income decile group. The eating-out expenditure is modelled as a function of household income and then estimated using econometric methods such as regression, rolling regression, impulse response, and variance decomposition of forecast error. The regression results indicate that the higher the income decile group is, the lower the income elasticity of eating-out expenditure is, and the high income groups enjoy seasonal eating-out, the low groups do not. The coefficients of dynamic rolling regression are much smaller than those of static one, meaning that households tend to decrease the eating-out expenditure of their income. The impulse response analysis suggests that the eating-out expenditure increase of higher income groups lasts long relative to that of lower income groups. The variance decomposition, also, shows that household income plays much more important role in determining eating-out expenditure at the higher income groups than at the lower income groups.