• KDI Journal of Economic Policy
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• v.25 no.2
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• pp.55-88
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• 2003

When the definition of income and the equivalence scale was applied just as it was in the LIS (Luxembourg Income Study), the adjusted disposable income inequality calculated by Gini coefficients in Korea was 0.358 for the year 2000. Compare to the 1996 figure of 0.298 the increase of income inequality has skyrocketed. In addition, the adjusted market income inequality increased from 0.302 in 1996 to 0.374 in 2000. The disposable income inequality ranked the third and the market income inequality ranked at the mid level in 2000 among OECD countries. One significant finding in this paper was that the difference between the disposable income inequality and market income inequality in Korea is very small compared to those of other OECD countries. The relative poverty ratio, which is calculated by using 40% of the medium income bracket of the disposable income was calculated at 7.6% in 1996 and 11.5% in 2000. The poverty ratio in 2000 for Korea ranked one of the highest in OECD countries, also.

• Journal of Labour Economics
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• v.40 no.3
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• pp.57-77
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• 2017

To prevent the disincentive of labor supply under the current welfare system, we suggest the safety income system, a Korean version of negative income tax. Under the proposed system, for example, a household with four members whose annual income is less than 50 million wons will get financial support from the government. Under the safety income system, labor supply increases and so does the gross domestic product. The disposable income of low-income households increases, which alleviates the income gap among households. Analyzing the Household Income and Expenditure Survey data, we show that under the safety income system the disposable income differentials among households are reduced much more than under the current welfare system or under the universal basic income system.

• Journal of Wellbeing Management and Applied Psychology
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• v.6 no.4
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• pp.1-10
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• 2023

Purpose: As an important provision to protect the rights and interests of low-income groups, it is worth studying whether the minimum wage policy can improve the quality of life for people. Research design, data and methodology: Using data from the 2015 and 2017 China General Social Survey (CGSS), this paper employs the logit model to estimate the probability of an individual's annual income being higher than the per capita disposable income of their province. It also utilizes the DID model to analyze the impact of minimum wage increases on individuals' annual incomes. Results: The analysis reveals that an overall increase in the minimum wage raises the probability of an individual's annual income exceeding the per capita disposable income by 3%. Among them, the probability increased by 2.2% for males and by 3.2% for females. Furthermore, the impact of the minimum wage on annual income varies depending on the individual's income level. Notably, the most positive and significant impact is observed for individuals whose income level is close to the minimum wage standard. Conclusions: This provides evidence that the increase in the minimum wage has effectively improved the quality of life for the population.

• KDI Journal of Economic Policy
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• v.26 no.1
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• pp.105-140
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• 2004

Korea is entering the class of aging population nations. This paper investigates the extent demographic factors and the aging population affect the saving rate, using an extended life-cycle/permanent-income hypothesis on saving. The results of the tests with Korean household survey data from 1977 to 2002 reveal that real saving rates increase when the duration of lifetime and per household real disposable income rise, and decrease when the growth rate of income and net worth-to-GDP ratio rises. The growth rate of per household real disposable income has negative effects, suggesting that households calculate their life cycle income in a forward looking manner. The elasticities with respect to a change in the lifetime horizon and the growth rate of per household income are 0.58 and -0.03, respectively. A one percent rise in the net worth to GDP ratio reduces the saving rate by 0.3 percent. A one percent rise in per household income increases it by 0.33 percent. The younger-age and the elder-age dependency ratios have insignificant effects on the household saving rate behavior. When Korean life expectancy rises, the private saving rate declines modestly and the government saving rate declines substantially. The economy's real net saving rate declines from 33 percent in 2002 to 30 percent by the year 2030.

• East Asian Economic Review
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• v.19 no.4
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• pp.381-408
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• 2015

This paper investigates a link between the significant decline in the growth of domestic demand and the dampened ripple effects from the export sector in Korea since the East Asian financial crisis. The dampened ripple effects are closely linked to the changed investment behaviors of the Korean large-sized exporting firms since the crisis: they do not invest in their export earnings any more to create new industries; they tend to use more foreign value added contents for their exports and to increase outward direct investment by actively participating in global value chains. The paper also examines a link between the growth of domestic demand and the growth of household disposable income and presents reasons for the decline in the growth of household disposable income since the East Asian financial crisis.

• KDI Journal of Economic Policy
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• v.13 no.1
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• pp.135-149
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• 1991

The economic policy of decreasing the electricity price is widely understood to have the effect of stabilizing the general price level and improving the income distribution. However, the impact of electricity price decrease on the income distribution is not quite sure although the electricity price decrease would increase the disposable income of all households. The electricity price change would affect the income distribution through three channels. The first impact on the income distribution is made through the electricity price sructure; Korean electricity price structure is designed to subsidized the industrial sector at the cost of household consumption sector in the sense that the price per unit electricity for industrial sector is much lower than that for household consumption sector. The second impact on the income distribution is created through the disposable household income effect of the price decrease; Relative disposable income effect among households appeared higher to lower income household group and this relative disposable income effect seem to improve the income distribution although the net effect is very small. The third impact on the income distribution is formulated through the net profit effect of entreprise sector; This unearned net profit increase to the already rich industrial entrepreneurs group could create a negative income distribution effect. A simulation of 10% electricity price decrease with all the price structure given was attempted to calculate the net effect of income distribution and it was found the net income distribution effect of flat electricity price decrease to be negative contrary to the general understanding. The income distribution effect would only be one criterion among many other criteria considered in the electricity price making process. The electricity price decrease would be helpful to the price stabilization and price competitiveness of industrial sector. However, it does not improve the general income distribution status by the electricity price decrease with the price structure given.

• 한국디지털정책학회:학술대회논문집
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• 2004.11a
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• pp.129-144
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• 2004

The purpose of this paper is to identify current trends in the sport industry in Korea, U.S. and Japan and to also analyze the potential of the sport industry in the 21st Century. This paper analyzes the current sport related index of Korea, U.S. and Japan and the effect of scientific development. Scientific development has provided prosperity to modern societies and has thus increased the personal disposable income and leisure time available to people living in these societies, Many people spend their?leisure time on sports related activities and the number is growing day by day and this situation makes the sports market a very attractive and important business sector in the world. Considering the increase of household income and leisure time and the introduction of a five-day working week system, the sports market potential growth will be considerable and it is certain the demand for sports related activities, services and products will also show increases in the 21st Century. This paper estimates that sports expenditures could be estimated at $10 billion in Korea, $150 billion in U.S and 4.3 billion yen in Japan. The general trends currently in action in the sport industry estimate that these numbers are growing rapidly and the relative importance of the sport industry among all industries is becoming one of the most important new emerging markets in the world.

• Journal of the Korean Home Economics Association
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• v.28 no.3
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• pp.105-125
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• 1990

The 78 housekeeping books were analyzed to find out the structure of income and expenditure of the farm household. The selected farm households were classified into 4 different farming types such as rice-cultivating, vinyl house, fruit-growing, and livestock farming. The results are summarized as follows : 1) The farm housekeeper ought to rationally manage farm household money income, because agricultural income was preponderated to several months regardless of farming types. 2) Farm household income was primarily dependent upon agricultural income and non-agricultural income in the livestock farming and rice-cultivating farm houshold respectively. 3) order of living expenses of the total farm households were recreation and entertainment expenses, food expenses, education expenses, and housing, fuel & light expenses in size. The major expenses were education expenses, food expenses and miscellaneous expenses in rice-cultivating, vinyl house and livestock farming, and fruit growing farm households respectively. 4) Balance of income and expenses of the farm household, s its time, size, and pattern of increase and decrease, was different by farming types. 5) Household expenses increased in February, May, August and December, though disposable income reversely decreased in February, April, August and December compared to each former month. So, special consideration should be taken into budget planning for household money management in February, August and December.

• Health Policy and Management
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• v.28 no.1
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• pp.95-97
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• 2018

Catastrophic health expenditure refers to when a household spends more than 40 percent of disposable income for out-of-pocket-expenses for healthcare. This study investigates the percentage of South Korean household which experienced the catastrophic health expenditure between 2006 and 2016 with the National Survey of Tax and Benefit and the Household Income and Expenditure Survey data. Percentage of households with the catastrophic health expenditure and tread tests were conducted with weight variable. The results of the National Survey of Tax and Benefit and the Household Income and Expenditure Survey showed 2.17% and 2.92% of households experienced the catastrophic health expenditure in 2016. In trend analysis, the National Survey of Tax and Benefit showed a statistically significant decreasing trend in the proportion of households with the catastrophic health expenditure (annual percentage change [APC]=-4.03, p<0.0001). However, the Household Income and Expenditure Survey revealed a statistically significant increasing trend (APC=1.43, p<0.0001). In conclusion, this study suggests that optimal healthcare alternatives are needed for the catastrophic health expenditure and monitoring low-income households.

• Korean Journal of Community Nutrition
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• v.21 no.4
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• pp.321-331
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• 2016

Objectives: The purpose of this study was to examine the economic characteristics of single-person households and explain the effects of them on the food service industry. Methods: For this paper, I analysed the data related with single-person households and the food service industry in two surveys, Household Income and Expenditure Survey and Wholesale and Retail Trade Survey published by Statistics Korea from 2006 to 2015, with an empirical test performed utilizing these data. The indicators of the age of householders, disposable income per capita, and the rate of household of worker were compared between single and multi-person households. Furthermore, sales and the number of establishments in the food service industry were used as industry-variables, and disposable income, eating-out expenses and the rate of single-person households as the household-variables were used in a panel analysis. Results: The results showed that household incomes were lower, age of householder was higher, and the percentage of household of worker was lower in single-person households in contrast to multi-person households. According to the empirical analysis, eating-out expenses of single-person households, in comparison to multi-person households, has significantly positive effects on the growth of the food service industry. This means that the recent trend of increasing numbers of single-person households may help the growth of the food service industry. Conclusions: The growth in the rate of single-person households has been one of the most striking demographic shifts in recent decades. Their economic characteristics and the effects were analyzed to give the managers in the food service industry and the policy-makers useful information in dealing with this new trend. Moreover, in considering the fact that single-person households eat out more frequently than multi-person households, the food service business should develop the managerial strategies focused on acclimatizing to single-person households.