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Limited Income Mobility: Empirical Evidence from Korea

Author

Listed:
  • Hyungna Oh

    (Kyung Hee University)

  • Yun Jeong Choi

    (Yonsei University)

Abstract

Using the Korea Labor and Income Panel Study from 1998 to 2010, we measure income mobility and determinants of income ranks and mobility. Empirical outcomes reveal that income mobility is quite limited for both the poorest and the richest income households. Moreover, a macro economic shock had heterogeneous impacts on each income group and the low-income class was highly vulnerable to it. Given the long-lasting impacts of early stage factors and initial endowment on income, this paper calls for policies to support citizens suffering from illness, family breakdown, poor initial conditions, and aging.

Suggested Citation

  • Hyungna Oh & Yun Jeong Choi, 2018. "Limited Income Mobility: Empirical Evidence from Korea," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 138(2), pages 665-687, July.
    • Handle: RePEc:spr:soinre:v:138:y:2018:i:2:d:10.1007_s11205-017-1670-9
    DOI: 10.1007/s11205-017-1670-9
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    Cited by:

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    More about this item

    Keywords

    Intragenerational mobility; Income elasticity; Poverty; Korea;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • I30 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General

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