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Household characteristics at the bottom, the typical, and the top of the 2016 income distribution in South Korea: A quantile regression analysis

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  • Yuri Mansury
  • Jae Beum Cho

Abstract

This paper seeks understanding how demographic characteristics affect the different quantiles of the South Korean income distribution. Findings from the 2016 Household Income and Expenditure Survey data suggest that, at the bottom of the distribution, households relied heavily on cash transfers from institutions and other households, while those at the top relied more on wages, suggesting that high‐income households in South Korea were not members of the “propertied class.” We then develop simple empirical models to measure the effect of demographic covariates on household income conditional on a number of variables commonly used in inequality studies, including lifecycle, education, gender, marital status, urban residence, job security, industry and occupation type. Quantile regression results demonstrate how a particular quantile of the conditional distribution changes with demographic characteristics. Specifically, we found an increase in gender and unemployment effects as we go from high to low quantiles. Programmes aimed at combating gender discrimination and persistent unemployment therefore are expected to be inequality reducing. This is in contrast to policies to promote higher education or to expand public sector employment that quantile regression models indicate to be inequality enhancing. El objetivo de este artículo es entender cómo afectan las características demográficas a los diferentes cuantiles de la distribución de ingresos en Corea del Sur. Los resultados de la Encuesta de Ingresos y Gastos de los Hogares de 2016 sugieren que, en la parte inferior de la distribución, los hogares dependen en gran medida de las transferencias en efectivo de instituciones o de otros hogares, mientras que los de la parte superior dependen más de los salarios, lo que sugiere que los hogares con altos ingresos en Corea del Sur no pertenecen al “propietariado”. A continuación, se desarrollaron modelos empíricos simples para medir el efecto de las covariables demográficas sobre los ingresos de los hogares, condicionadas a una serie de variables comúnmente utilizadas en los estudios de desigualdad, como el ciclo de vida, educación, género, estado civil, residencia urbana, seguridad laboral, y tipo de ocupación y sector laboral. Los resultados de la regresión cuantílica demuestran cómo cambia un determinado cuantil de la distribución condicional con las características demográficas. Específicamente, se encontró un aumento en los efectos de género y desempleo a medida que se pasa de los cuantiles altos a los bajos. Por lo tanto, se espera que los programas destinados a combatir la discriminación de género y el desempleo persistente reduzcan la desigualdad. Esto contrasta con la existencia de políticas de promoción de la educación superior o de expansión del empleo en el sector público, las cuales aumentan la desigualdad de acuerdo con los modelos de regresión cuantílica. 本稿では、韓国の所得分配の分位数に対して人口統計学的特性がどのように影響するかの解明を試みる。2016年の世帯収支調査(Household Income and Expenditure Survey)により得られた知見から、所得分配のボトムの世帯は、公共機関および他の世帯からの現金給付に大きく依存し、その一方で所得分配のトップの世帯は賃金にかなり依存していることが示され、そこから韓国の高所得世帯は「有産階級」ではないことが示唆される。次に、不平等の研究で多く用いられる様々な変数に依存的な世帯収入に対する人口統計学的共変量 (ライフサイクル、学歴、性別、婚姻歴、都心居住、職の安定、業種、職種など)の影響を測定する簡単な実証モデルを作成する。分位点回帰分析の結果から、ある条件付分布の分位数が人口統計学的特性によりどのように変化するかがわかる。具体的には、大きい分位数から小さい分位数になるにつれて、性別と失業の影響が大きくなることが分かった。性別による差別と持続的な失業の対策を目的としたプログラムは、不平等を減少させることが期待される。これは、分位点回帰分析により不平等を拡大することが指摘される、高等教育の促進または公共セクターの雇用を拡充する政策と対照的である。.

Suggested Citation

  • Yuri Mansury & Jae Beum Cho, 2019. "Household characteristics at the bottom, the typical, and the top of the 2016 income distribution in South Korea: A quantile regression analysis," Regional Science Policy & Practice, Wiley Blackwell, vol. 11(1), pages 5-21, March.
  • Handle: RePEc:bla:rgscpp:v:11:y:2019:i:1:p:5-21
    DOI: 10.1111/rsp3.12177
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    1. Rinku, 2023. "Wage determinants of creative industry workers: A quantile regression analysis of traditional Indian embroidery (chikankari) industry workers of Lucknow," Regional Science Policy & Practice, Wiley Blackwell, vol. 15(5), pages 1008-1018, June.

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