• Korean Journal of Social Welfare
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• v.62 no.3
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• pp.31-58
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• 2010

Using Seoul Welfare Panel Study, this research examines regional differentials in income and asset between Gangnam households and Non-Gangnam households in Seoul. Applying the Oaxaca decomposition method, it also decomposes factors associated with the differentials into explained and unexplained components. Results show that average monthly income is about 4 million won for Gangnam households and 3.2 million won for Non-Gangnam households. The explained component accounts for most of the income differential, which mainly originates from differences in the distributions of individual and household characteristics associated with the monthly income. The net asset differential between the two regions is much greater than the income differential. The net asset is about 460 million won for Gangnam households and approximately 280 million won for Non-Gangnam households. Most of the net asset differential is remained unexplained after controlling for covariates which measure demographic characteristics of householders and various features of labor market in which household members are employeed. It implies that other factors such as inter-generational transfers of wealth may play a significant role in creating the net asset differential.

• The Korean Journal of Applied Statistics
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• v.19 no.1
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• pp.1-12
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• 2006

The aim of this study is to analyse a survey data on the number of charitable donations using a mixture of two Poisson regression models. The survey was conducted in 2002 by Volunteer 21, an nonprofit organization, based on Koreans, who were older than 20. The mixture of two Poisson distributions is used to model the number of donations based on the empirical distribution of the data. The mixture of two Poisson distributions implies the whole population is subdivided into two groups, one with lesser number of donations and the other with larger number of donations. We fit the mixture of Poisson regression models on the number of donations to identify significant covariates. The expectation-maximization algorithm is employed to estimate the parameters. We computed 95% bootstrap confidence interval based on bias-corrected and accelerated method and used then for selecting significant explanatory variables. As a result, the income variable with four categories and the volunteering variable (1: experience of volunteering, 0: otherwise) turned out to be significant with the positive regression coefficients both in the lesser and the larger donation groups. However, the regression coefficients in the lesser donation group were larger than those in larger donation group.

• The Journal of the Korea Contents Association
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• v.20 no.3
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• pp.560-571
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• 2020

Essential urban services that protect citizens' lives and property such as firefighting, disaster and crime prevention, should be provided equally to all citizens regardless of their location, personal status, and income. This paper analyzes the equality of firefighting services in spatial and social perspective in Daejeon Metropolitan City. For this the accessibility of fire service was analyzed for all settlements in the city. In addition, the distribution status of low-income class and forecasted income each region were compared to analyze whether the area where fire fighting service in 5 minutes was related to the distribution of income class. According to the analysis, the area where fire service can be provided within 5 minutes was 46.2% of Daejeon, and 98.0% of the population lived in this area. The proportion of old-age pensioners living in the area where fire service can't be provided within 5 minutes was 52.7%, reise than the average of 7.14% in Daejeon. In addition, in areas where the provision of firefighting services exceeds five minutes, the forecasted income tends to be lower in areas where service arrival is delayed. Therefore, it can be said that the economically vulnerable people living in the outskirts of Daejeon are not provided with equal urban services, and policy consideration is required accordingly.

• Journal of Labour Economics
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• v.27 no.1
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• pp.107-134
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• 2004

This paper attempts to find out the economic roots of the increasing tendency not to choose the science and engineering (S&E) fields in the colleges. The analysis shows that the relative economic position of the S&E graduates measured in terms of employment quality is not significantly different from that of the non-S&E graduates. But the S&E graduates earn relatively low wage and self-employment income. Furthermore, the relative income of the top 5% bracket of the S&E graduates has been declining in the recent five years. The paper concludes that low relative income of the average S&E graduates as well as the increasingly lower relative income of the most able S&E personnel, coupled with the increasing compensating differential required for the S&E jobs, is the main reason for the 'avoidance' phenomenon of the S&E fields.

• Journal of the Korea Society for Simulation
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• v.33 no.1
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• pp.27-34
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• 2024

This study aims to propose an optimal asset allocation that minimizes the risk of insufficient realized replacement rates compared to the OECD average replacement rate. To do this, we set the shortfall risk of replacement rates and calculates an asset allocation plan to minimize this risk based on the period of enrollment, the income level and additional contribution. We consider stocks and deposits as investment assets, using Monte Carlo simulation with a GBM model to generate return distributions for stocks. Our result show that, for individuals with a enrollment period of less than 30 years, participants should invest a minimum of 70-80% of their funds in risky assets to minimize the shortfall risk. However, the proportion of funds that need to be invested in risky assets declines significantly when participants contribute an additional premiums. This effect is particularly pronounced among low-income individuals. Therefore, to achieve OECD average replacement rates, the government needs to incentivize participants to invest more in risky assets, while also providing policies to encourage additional contributions, especially for the low-income population.

• KDI Journal of Economic Policy
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• v.12 no.4
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• pp.97-111
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• 1990

This paper examines the effect of redistributive inheritance tax on income distribution and social welfare. The model used here is the Overlapping-Generations Model consisting of individuals with different bequest motives where the lifetime income distribution in each cohort is determined endogeneously by the dynamic bequest process. It is shown that the introduction of redistributive inheritance tax can improve the vertical equity in the sense that the increase in tax rate reduces the coefficient of variations of intra-cohort income distribution in steady-state. However, it is also shown that, the effect on social welfare, when measured by Benthamite SWF, is uncertain in general. The numerical simulations show that, in spite of its equity-enhancing effect, the tax increase can actually lower the steady-state social welfare within the plausible range of parametric values, through the long-run output effect as well as the deadweight welfare loss incurred by tax distortion. Hence, the problem of equity-efficiency trade-off can arise in this case. However, if both the market interest rate and the elasticity of marginal utility in individual's preference function are sufficiently high, it is shown to be possible that the steady-state social welfare is enhanced by the introduction of inheritance tax.

• KDI Journal of Economic Policy
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• v.9 no.3
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• pp.27-43
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• 1987

본 논문은 우리나라 특별소비세부담(特別消費稅負擔)의 누진도(累進度) 혹은 역진도(逆進度)를 측정할 수 있는 지표(指標)를 개발하고 이 지표를 이용해 동(同) 세제(稅制)의 소득재분배효과(所得再分配效果)를 분석함을 목적으로 하고 있다. 이를 위하여 과세대상품목에 대한 소득계층별 지출비중만으로 편리하게 계산될 수 있는 세부담(稅負擔)의 역진성지수(逆進性指數)를 개발하고 도시가계조사자료(都市家計調査資料)를 이용하여 특별소비세 관련 품목에 대한 상기(上記) 역진성지수(逆進性指數)를 시산(試算)하였다. 시산결과(試算結果)는 전국적(全國的)인 자료(資料)를 이용하지 않았다는 점과 특별소비세(特別消費稅) 과세대상과 가계조사항목(家計調査項目)이 정확하게 일치하지 않는다는 점 등 때문에 특별소비세부담(特別消費稅負擔)의 분포를 정확하게 나타내는 것이라고 할 수 없으나 대체로 예상되던 패턴을 크게 벗어나지 않고 있다. 이 시산결과(試算結果)에 의하면 특별소비세(特別消費稅) 같은 개별소비세(個別消費稅)로서 소득재분배 목적을 달성하려는 시도는 현실적으로 쉽지 않을 뿐만 아니라 다른 여러가지 문제들을 수반할 수 있음을 시사하는 것으로 판단되었다. 따라서 이 세제(稅制)의 개선(改善)은 외부효과(外部效果) 교정(矯正) 등 개별소비세 고유의 제한된 정책기능을 우선적으로 강조하는 소득재분배기능은 부차적(副次的) 목적(目的)으로 고려하는 방향(方向)에서 접근하는 것이 바람직하다고 본다.

• Journal of Environmental Policy
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• v.12 no.3
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• pp.97-122
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• 2013

The ARDL(Autoregressive Distributed Lag) method is employed analyzes the long-run equilibrium relationships among environmental pollution($CO_2$ emissions) per capita, income levels per capita, and energy consumption per capita. The error correction model is employed to analyze the short-term effects of income and energy consumption on $CO_2$ emissions. The Toda-Yammamoto method is employed for causal analysis among the three variables. The results show that income levels, energy consumption, and $CO_2$ emissions are cointegrated. We found the N type relationship between income and $CO_2$ emissions. Long-term elasticities of income and energy consumption with respect to $CO_2$ emission were greater than their short-term elasticities. There were a bilateral causality between energy consumption and $CO_2$ emissions. There was a unilateral causality from $CO_2$ emissions to income and from energy consumption to income not vice versa. Energy consumption can be an important variable to contribute to forecasting $CO_2$ emissions.

• The Korean Journal of Applied Statistics
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• v.30 no.6
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• pp.917-929
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• 2017

Korean income data obtained from Korea Labor Panel Survey shows excessive zeros, which may not be properly explained by the Tobit model. In this paper, we analyze the data using a zero-inflated Tobit model to incorporate excessive zeros. A zero-inflated Tobit model consists of two stages. In the first stage, individuals with 0 income are divided into two groups: genuine zero group and random zero group. Individuals in the genuine zero group did not participate labor market since they have no intention to do so. Individuals in the random zero group participated labor market but their incomes are very low and truncated at 0. In the second stage, the Tobit model is assumed to a subset of data combining random zeros and positive observations. Regression models are employed in both stages to obtain the effect of explanatory variables on the participation of labor market and the income amount. Markov chain Monte Carlo methods are applied for the Bayesian analysis of the data. The proposed zero-inflated Tobit model outperforms the Tobit model in model fit and prediction of zero frequency. The analysis results show strong evidence that the probability of participating in the labor market increases with age, decreases with education, and women tend to have stronger intentions on participating in the labor market than men. There also exists moderate evidence that the probability of participating in the labor market decreases with socio-economic status and reserved wage. However, the amount of monthly wage increases with age and education, and it is larger for married than unmarried and for men than women.

• The Korean Journal of Applied Statistics
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• v.16 no.2
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• pp.283-291
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• 2003

The Gini index is one of the most commonly used measures of inequality of income distributions. In this paper, the Lorenz curve is estimated by arcs of two optimal circles, and a new simple method to estimate the Gini index is proposed using the law of cosines. We compare the proposed estimator with the estimator proposed by Ogwang and Rao(1996) in terms of the mean squared error(MSE) though Monte Carlo simulation in a Pareto distribution.