• Title/Summary/Keyword: Decomposition by income source

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Accounting for Trends in Income Inequality Among the Elderly (노인 소득불평등 추이의 영향요인)

  • Lee, Won Jin
    • Korean Journal of Social Welfare
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    • v.64 no.4
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    • pp.163-188
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    • 2012
  • This study examines recent trends in income inequality among the elderly in Korea. Aggregate income inequality trends are explained by examining evidence from inequality index decomposition by population subgroup and by income source. Data come from Korean Labor and Income Panel Study(KLIPS). The results are as follows. First, elderly income inequality increased from 1999 to 2002, and then decreased until 2008. Second, household composition changes appear to have disequalizing influence. The proportion of elderly people who are economically dependent on non-elderly family member or living with adult children has declined. Equalizing influence of private transfers also decreased between 2002 and 2008. These results indicate that the redistributive role of family has weakened over time. Third, the improvement of education level and changing occupational structure among the elderly household head contributed to increase in elderly income inequality. Fourth, earning's factor share has declined steadily, and the diminishing role of earnings provides equalizing influence on elderly income inequality from 2002 to 2008. Fifth, the impact of recent expansion of social insurance has changed over time. Inequality contribution of social insurance income increased from 1999 to 2002, and then decreased from 2002 to 2008.

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A Decomposition Analysis of Fisheries Household Income Inequality with and without Public Subsidies (공적보조금 유무에 따른 어가소득불평등도 분해 분석)

  • Min-Ju Jeong;Jong-Oh Nam
    • The Journal of Fisheries Business Administration
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    • v.54 no.2
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    • pp.77-90
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    • 2023
  • This study employed the Gini coefficient decomposition analysis to classify and examine fishery household income inequality according to income sources. The raw data from the Fisheries Economic Survey by the National Statistical Office were used for the analysis after equalization according to the recommended method of the OECD. In particular, the Gini coefficient was decomposed by classifying with and without public subsidies, and the contribution, correlation, and marginal effect by income source were presented.As a result of the analysis, the inequality of fishing income and non-fishing income of fishermen was worsening, and the inequality of transfer income was continuously easing. Among them, fisheries subsidies have been analyzed to have the greatest contribution to the Gini coefficient of gross income and the highest relative marginal effect, although distribution inequality has been alleviated. On the other hand, other subsidies, including public pensions, were found to have the opposite contribution, correlation, and marginal effect to fisheries subsidies. The results of this analysis showed that even within public subsidies, the contribution to income redistribution might differ depending on the nature of the subsidy. In addition, in the case of other public subsidies, it can be seen that the transition from selective welfare to universal welfare occurs.

Analysis of Forestry Household Income Inequality using Gini Coefficient Decomposition by Income Sources (소득원천별 지니계수 분해법을 이용한 임가의 소득불평등 분석)

  • Kim, Eui-Gyeong;Kim, Bo-Kyeong;Kim, Dong-Hyun
    • Journal of Korean Society of Forest Science
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    • v.108 no.3
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    • pp.392-404
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    • 2019
  • 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.

Analysis on the Income Distribution Effects of Husband-Wife Labor Income and Employment Ratio (부부의 노동소득과 취업상태가 소득불평등 변화에 미치는 효과)

  • Choi, Paul
    • Journal of Labour Economics
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    • v.36 no.3
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    • pp.97-128
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    • 2013
  • This paper analyzes the changing factors of income inequality by approaches to income sources focusing on the effect of husband-wife labor income relation and employment ratio change on income inequality. The level of contribution of income source to income inequality showed that the inequality of labor income between husband and wife(especially the husband's income) takes great importance. Also, the covariance of labor income of husband and wife showed growing trend and changed toward the same direction. As a result of the decomposition of the labor income covariance, it was found that the change in husband-wife employment ratio explained the covariance change better than the change in labor income inequality.

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Analysis of Inequality Effects by Income Sources Using the Gini Income Elasticity (GIE를 이용한 소득원천 별 불평등 효과 분석)

  • Seo, BongKyun
    • Korean Journal of Social Welfare Studies
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    • v.41 no.1
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    • pp.65-84
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    • 2010
  • The purpose of Inequality Index Decomposition is to know the cause of overall inequality through decomposing aggregate inequality index into relevant components. Previous studies have mostly focused on the absolute contribution meaning that how much each component possesses out of overall inequality. However it could be more important to know the marginal contribution and inequality effect of each component in order to implement policies reducing overall inequality effectively. For this, we decomposed Gini Coefficient as representative inequality index into income sources or social welfare programs and calculated each Gini Income Elasticity(GIE). Analysis result says that regular employee income and employer(or the self-employed) income, of which GIE are 1.205 and 1.867, are classified as inequality-increasing income source. GIE can be one of good methods to analyse the inequality effect of various income sources and social welfare programs.

An Empirical Study on Effect of Property Income on Income Inequality (부동산소득이 지역별 가구 소득불평등에 미치는 영향에 관한 실증연구)

  • Chun, Haejung
    • Journal of the Economic Geographical Society of Korea
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    • v.17 no.3
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    • pp.502-516
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    • 2014
  • This study has decomposed the Gini coefficient using Korean Labor & Income Panel Study data and empirically analyzed the impact of demographic characteristics and source-specific income of householder on the household income gap using panel analysis. The scope of areas were divided into 'nationwide,' 'metropolitan areas,' and 'non-metropolitan areas,' and the period before and after the global financial crisis was examined. The analysis findings are as follows. First, when the entire period was examined by income source using Gini decomposition with division of areas into 'nationwide,' 'metropolitan areas,' and 'non-metropolitan areas', the following results were revealed. The absolute and relative contribution level of property income to the gross income was the largest in the category of 'nationwide' and 'metropolitan areas,' while the contribution level of earned income was the largest in the category of 'non-metropolitan areas'. In addition, property income worsened the household income gap the most in the category of 'nationwide' and 'metropolitan areas.' Second, property income worsened the household income gap less after the financial crisis than before the crisis. It is probably because the price of real estate skyrocketed before the global financial crisis, worsening the household income gap, whereas the price drop after the crisis temporarily alleviated the gap. Third, a correlation analysis revealed that households with older householders whose education is high school graduation or below had relatively low gross income, and households with higher source-specific income, especially earned income, had relatively high gross income. Fourth, when the household income determinants were compared through panel analysis with division of areas into 'nationwide,' 'metropolitan areas,' and 'non-metropolitan areas,' the following results were obtained. While the impact of earned income, financial income, and other incomes was greater in non-metropolitan areas than in metropolitan areas, the impact of property income was greater in metropolitan areas than in non-metropolitan areas. To reduce the income gap, the government should impose higher taxes on the high-income class and provide tax benefits to the low-income class, with efforts to create a wide variety of jobs. In addition, since income inequality gets worse as the proportion of incomes generated through asset holdings becomes higher, the government should focus on stabilizing property prices while paying attention to the regional differentiation when carrying out related policies.

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Fairness of Health care financing: Progressivity and Retstributive Effect (가구 소득과 보건의료비 지출의 형평성 : 누진성과 소득재분배 효과)

  • 신호성;김명기;김진숙
    • Health Policy and Management
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    • v.14 no.2
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    • pp.17-33
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    • 2004
  • The present study attempts to examine the progressivity of health care financial sources based on the income approach, for which it decomposes redistributive effects into vertical, horizontal, and re-ranking components. The study data include Korean Household Expenditure Survey (2000) conducted every 5 year by Korea National Statistical Office. The data were sampled from the national population by the multistage probabilistic sampling method, and amounts to 23,270 households. For the better application of the income approach, the study employs household total expenditure in Korea instead of total income, because the former data source is more reliable and less fluctuated over time. Progressivity of health care financing was measured by Kakwani index. Aronson's decomposition equation was used in case of the analysis where differential treatment of health care expenditure needs to be considered. Despite the progressivity of Korea's governmental contributions, total expenditure of health care showed regressive pattern, which may largely be attributable to the higher regressivity in out-of-pocket money. With the result of negative Kakwani index, differential treatment increased income redistribution biased for better-off. It is worth to note that social insurance displays not only negative Kakwani index, but also horizontal inequality, suggesting that the first step of health care financing reform should be the revision of social insurance premium rates toward effective and equable way.