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Rising Or Falling Inequality In Korea? Population Aging And Generational Trends

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  • SUNG-JIN KANG

    (Department of Economics, Korea University, Seoul, South Korea)

  • ROBERT RUDOLF

    (#x2020;Division of International Studies, Korea University, 145 Anam-ro, Seongbuk-gu, Seoul 136-701, South Korea)

Abstract

Using 30 years of the South Korean household income and expenditure surveys (HIES) from 1982 to 2011, this paper argues that Korea experienced significantly differing generational trends in consumption and income inequality when taking demographic changes related to population aging into account. While income inequality stagnated or slightly rose over the past two generations, consumption inequality in fact declined. These antagonistic trends are likely due to better access of poorer households to financial markets as well as the gradual expansion of the welfare state. In the absence of appropriate policies, rapid population aging will substantially increase overall inequality in the future.

Suggested Citation

  • Sung-Jin Kang & Robert Rudolf, 2016. "Rising Or Falling Inequality In Korea? Population Aging And Generational Trends," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 61(05), pages 1-26, December.
    • Handle: RePEc:wsi:serxxx:v:61:y:2016:i:05:n:s0217590815500897
    DOI: 10.1142/S0217590815500897
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    Cited by:

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    2. Almas Heshmati & Robert Rudolf, 2014. "Income versus Consumption Inequality in Korea: Evaluating Stochastic Dominance Rankings by Various Household Attributes," Asian Economic Journal, East Asian Economic Association, vol. 28(4), pages 413-436, December.

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