Skip to main content
padlock icon - secure page this page is secure

Income versus Consumption Inequality in Korea: Evaluating Stochastic Dominance Rankings by Various Household Attributes

Buy Article:

$52.00 + tax (Refund Policy)

Using four rounds (1999, 2002, 2005 and 2008) of the Korean Labor and Income Panel Study, the present paper examines determinants of household income and consumption levels and inequalities. Unconditional as well as conditional stochastic dominance tests are performed by year, by household heads’ characteristics (age, education, gender, health, marital status and occupation) and by household characteristics (household type, household size and degree of urbanization). Mean least squares regression techniques are used to predict conditional expectations. The residuals containing effects for each characteristic conditional on the remaining characteristics are then used for the stochastic dominance analysis employing extended Kolmogorov–Smirnov tests of first‐order and second‐order dominance in distribution of income and consumption. The results provide a detailed and up‐to‐date picture of inequality and poverty by subgroup in Korea, which helps in targeting particularly vulnerable groups. While inequality in disposable income is found to be substantial, consumption inequality is less substantial. Households headed by the elderly, the uneducated, the divorced, the widowed, females, and those with health problems are found to be the most vulnerable groups.
No References
No Citations
No Supplementary Data
No Article Media
No Metrics

Keywords: C14; D31; D63; I31; Korea; bootstrap; consumption inequality; disposable income; poverty; stochastic dominance

Document Type: Research Article

Publication date: December 1, 2014

  • Access Key
  • Free content
  • Partial Free content
  • New content
  • Open access content
  • Partial Open access content
  • Subscribed content
  • Partial Subscribed content
  • Free trial content
Cookie Policy
X
Cookie Policy
Ingenta Connect website makes use of cookies so as to keep track of data that you have filled in. I am Happy with this Find out more