IDEAS home Printed from https://ideas.repec.org/p/yon/wpaper/2022rwp-208.html
   My bibliography  Save this paper

The Impact of Single Households on Local Economy: Evidence from Korea’s Demographic Trends

Author

Listed:
  • Hee-Seung Yang

    (Yonsei University)

  • Sungjin Kim

    (Yonsei University)

Abstract

Is the recent stagnation in population growth a threat to the economy? The answer may not be obvious if cities are losing population while gaining households. This paper unveils an important but unexplored channel for local economic growth: the rise in single-person households. We analyze the intercity relationship between the growing number of singleperson households and its impact on the local economy. To address endogeneity concerns, we predict the actual concentration of singletons using the uneven distribution of convenience store operating permits attracting one-person households. IV-2SLS results indicate that single households generate new jobs, firm entry, and a higher level of gross regional domestic product. The effect is primarily caused by industries substituting household production, meal preparation, and recreation services.

Suggested Citation

  • Hee-Seung Yang & Sungjin Kim, 2022. "The Impact of Single Households on Local Economy: Evidence from Korea’s Demographic Trends," Working papers 2022rwp-208, Yonsei University, Yonsei Economics Research Institute.
    • Handle: RePEc:yon:wpaper:2022rwp-208
    as

    Download full text from publisher

    File URL: http://121.254.254.220/repec/yon/wpaper/2022rwp-208.pdf
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    Single-person household; Local economy; Employment; Firm entry; Gross Regional Domestic Product; South Korea.;
    All these keywords.

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • J12 - Labor and Demographic Economics - - Demographic Economics - - - Marriage; Marital Dissolution; Family Structure
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R20 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - General

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:yon:wpaper:2022rwp-208. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: YERI (email available below). General contact details of provider: https://edirc.repec.org/data/eryonkr.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.