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The Cubic Form Hypothesis and the Flying Geese Pattern Hypothesis of Income Distribution: The Case of Korea

  • Yamamura, Eiji
  • Shin, Inyong
  • Kim, Hyunho

This paper examines the cubic form hypothesis and the flying geese pattern hypothesis of income distribution. We use time series data for the Gini coefficients of Korea for 1961-2006 and panel data calculated based on a household income survey for the period 1998-2003. We show; (1) The Korean economy has a cubic form inequality as shown in many advanced countries such as the U.S, U.K and Japan, and (2) Different relationships between income inequality and income level are observed among regions since less developed rural areas lagged behind more developed urban ones. Thus the pattern of the change of inequality by region in Korea has similarities to the flying geese pattern and the multiple catching up pattern that are processes of the industrialization of manufacturing.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 10219.

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Date of creation: 25 Jun 2008
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Handle: RePEc:pra:mprapa:10219
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  1. Toshiaki Tachibanaki, 2005. "Confronting Income Inequality in Japan: A Comparative Analysis of Causes, Consequences, and Reform," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262201585, June.
  2. Galor, Oded & Tsiddon, Daniel, 1996. "Technological Progress, Mobility, and Economic Growth," CEPR Discussion Papers 1413, C.E.P.R. Discussion Papers.
  3. Euijune Kim & Euijune Kim & Sung Woong Hong & Soo Jung Ha, 2003. "Impacts of national development and decentralization policies on regional income disparity in Korea," The Annals of Regional Science, Springer, vol. 37(1), pages 79-91, 02.
  4. Euijune Kim & Kabsung Kim, 2002. "Impacts of regional development strategies on growth and equity of Korea: A multiregional CGE model," The Annals of Regional Science, Springer, vol. 36(1), pages 165-180.
  5. Mah, Jai S., 2003. "A note on globalization and income distribution--the case of Korea, 1975-1995," Journal of Asian Economics, Elsevier, vol. 14(1), pages 157-164, February.
  6. Lopez, Humberto, 2006. "Growth and inequality: Are the 1990s different?," Economics Letters, Elsevier, vol. 93(1), pages 18-25, October.
  7. Mah, Jai S., 2006. "Economic restructuring in post-crisis Korea," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 35(4), pages 682-690, August.
  8. Jung, Jin Hwa, 1992. "Personal income distribution in Korea, 1963-1986: A human capital approach," Journal of Asian Economics, Elsevier, vol. 3(1), pages 57-71.
  9. Sangjoon Jun, 2006. "The Nexus between IT Investment and Banking Performance in Korea," Global Economic Review, Taylor & Francis Journals, vol. 35(1), pages 67-96.
  10. Seon-Jae Kim, 2003. "Information Technology and Its Impact on Economic Growth and Productivity In Korea," International Economic Journal, Taylor & Francis Journals, vol. 17(3), pages 55-75.
  11. Fields, Gary S & Yoo, Gyeongjoon, 2000. "Falling Labor Income Inequality in Korea's Economic Growth: Patterns and Underlying Causes," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 46(2), pages 139-59, June.
  12. Amos, Orley Jr., 1988. "Unbalanced regional growth and regional income inequality in the latter stages of development," Regional Science and Urban Economics, Elsevier, vol. 18(4), pages 549-566, November.
  13. Kim, Euijune & Jeong, Youn Hee, 2003. "Decomposition of Regional Income Inequality in Korea," The Review of Regional Studies, Southern Regional Science Association, vol. 33(3), pages 313-27.
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