• Title, Summary, Keyword: Income Mobility

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The Importance of Financial Literacy: Household's Income Mobility Measurement and Decomposition Approach

  • MONSURA, Melcah Pascua
    • The Journal of Asian Finance, Economics and Business
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    • v.7 no.12
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    • pp.647-655
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    • 2020
  • This study introduced income mobility analysis using pseudo-longitudinal panel data from Family Income and Expenditure Survey (FIES) to consider the dynamic process of individual's well-being through time. Since there is no comprehensive measurement of income mobility because of its dynamic process, various income mobility indices such as Chi-square, Average Jump Index, Atkinson et al. Mobility Ratio, and Shorrocks' Mobility Index were used. These indices revealed that Filipino households' income movements are more mobile than expected, and their income status improved from 2000 to 2015. As income mobility takes place, income inequality is reduced by 91.80 percent (91.80%). Furthermore, the growth effect is the main factor of income mobility. This indicates that households took the economic opportunities from economic growth to earn more. However, income mobility due to transfer effect (transfer of income from one household to another through lottery winning and borrowing) increased when the economy is not good. The higher income mobility due to growth effect compared to transfer effect, whether the economy is good or bad, means that households learned how to use their income in savings, investments, and entrepreneurship. This is the result of a successful financial literacy program of the government wherein households realized financial stability and security.

The Experience of Self-employed Business and the Income Mobility by Age Group (연령별 자영업 경험과 소득계층 이동에 관한 연구)

  • Kim, Dokyun
    • 한국사회정책
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    • v.25 no.2
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    • pp.281-304
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    • 2018
  • This paper aims at analysing what impacts the experience of self-employed business have had on the income mobility. Since 2000s, the flexibilization of labor market and the population aging led to the increase of the number of self-employed job as many retirees at the age of early 50s has set up the self-employed business as a bridge job. However, previous researches just have emphasized on the impoverishment of the self-employed, but not focused on what different effects the experience of self-employed had on the income class mobility by age group. This paper compares the difference in the income class mobility by age group and employment status, and analyses its longitudinal trends. According to the result, as a whole the experience of self-employed has positive effect on the upper mobility of income class, but it become disadvantageous for the upper mobility as the age goes up. When belonging to the age group over 60s, the experience of self-employed rather increases the risk of lowering income class. Just as the experience of self-employed has different effects on income class mobility by age group, so the differentiated measures for age groups are demanded.

Changes in Income Inequality and Income Mobility Associated with a Transition to Old Age (노년기로의 이행에 따른 소득불평등 변화와 소득이동성)

  • Lee, Won-Jin
    • Korean Journal of Social Welfare
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    • v.64 no.2
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    • pp.185-212
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    • 2012
  • This study examines changes in income inequality and income mobility associated with a transition to old age. In understanding the dynamics of income distribution over the later life course, it is important to explore the changes in income dispersion and the changes in relative income positions jointly. Data come from Korean Labor and Income Panel Study(KLIPS) 2nd, 7th, 12th wave. The results are as follows. First, a transition to old age is associated with an increase in income inequality. The Gini index of inequality increased steadily over the life course. Second, a transition to old age is associated with substantial income mobility. The Spearman's rank correlation coefficient between two periods was the lowest at the time of the transition. Increasing income dispersion and significant income mobility can be conceptualized as "income insecurity", since the older population are less likely to cope with income fluctuations. Third, in explaining such changes over time, changes in work life during old age and a subsequent decrease in earnings seem to be the most influential factor.

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Analysis on the Change and Its Cause of Income Distribution before and after the Financial Crisis: Income Mobility Perspective

  • Yoo, Gyeongjoon
    • KDI Journal of Economic Policy
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    • v.26 no.1
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    • pp.141-190
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    • 2004
  • Income inequality in Korea has increased after the economic crisis, and the main reason for the widening of income distribution is due to the increase of the unemployed when analyzed using the Urban Household Report(UHR). However, income inequality has not decreased although the rate of unemployment decreased after 2000. Further data bases for income-related statistics are necessary to examine the exact causes of changing income inequality as a whole since the UHR covers only statistics on urban employees' wage and salary in Korea.

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Intergenerational Income Elasticities in Korea and Their Trend (한국의 세대 간 소득탄력성과 추세)

  • Kim, Bonggeun;Seok, Jae Eun;Hyun, Eun Ju
    • Journal of Labour Economics
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    • v.35 no.2
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    • pp.25-41
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    • 2012
  • This paper estimates the intergenerational income mobility of Korea by applying the new errors-in-variable correction methods to recent waves of the Korea Labor and Income Panel Study. The intergenerational income elasticity estimates ranged from 0.24 to 0.34 show a substantial intergenerational income association in Korea and an upward trend over time.

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Analyzing the Residential Mobility Factors of Low-Income Households (저소득가구의 주거이동 요인 분석)

  • Kang, Mi;Lee, Jae Woo
    • Korea Real Estate Review
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    • v.28 no.3
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    • pp.79-94
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    • 2018
  • This study analyzed the factors associated with residential mobility based on the data from the 11th to the 19th wave of the Korean Labor & Income Panel Study (KLIPS). After grouping low-income households within the first to the fourth income bracket into households that exhibited no income bracket change and those with income bracket changes during the research period, this study examined the effects of the income situation of each group on residential mobility. According to the results of the analysis, in the group of households that showed no low-income bracket change, significant effects were found only in the age of the head of the household, housing cost, and rental deposit (Jeonse) and monthly rental of the household. In the group of households that showed low-income bracket changes, findings were generally in line with those of the whole household, where total income and the number of full-time employees in the household were the same as those of the whole household, indicating that it would be necessary to improve the employment stability of low-income households. Based on the findings of this study, housing inequality is intensifying within low-income households, and, thus, housing policies, based on continuing surveys, must be implemented to enhance income opportunities and stabilize the housing needs of low-income households.

An Empirical Analysis of Intragenerational Income Mobility in Korea (우리나라의 세대 내 소득이동성에 관한 실증분석)

  • Yun, Jungyoll;Hong, Kiseok
    • Journal of Labour Economics
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    • v.35 no.2
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    • pp.43-77
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    • 2012
  • This paper investigates how individual labor income is determined by initial conditions - such as educational attainment, age, and sex - and all the other conditions. Using KLIPS (Korea Labor & Income Panel Study) database, the paper finds, first, that over the period of 1998-2008, cross-sectional income distribution has deteriorated for the whole sample but not within each age group. Second, income mobility defined by the relative importance of initial conditions in individual income disparities has moderately increased in most age groups.

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Estimating the Intergenerational Income Mobility in Korea (한국의 세대 간 소득이동성 추정)

  • Yang, Jung-Seung
    • Journal of Labour Economics
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    • v.35 no.2
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    • pp.79-115
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    • 2012
  • In the study, we try to get reliable estimates of intergenerational income mobility in Korea. At first, we show that the low estimates of previous studies are mainly due to sample selection problem. The direct estimations using OLS after correcting this problem show higher values than previous estimates. We also compute the attenuation bias by decomposing the variances of earnings into the variances of permanent and transitory components of earnings by the results of the regression. Additionally, we try to estimate the range of intergenerational mobility by comparing the OLS results with the results of the two samples instrumental variable estimation and the three samples instrumental variable estimation. The results of these estimations are a little higher than or similar to OLS results.

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A Study on the Types of Residential Mobility in the Households of Public Rental Housing: Focused on Those Who Moved Out from National Rental Housing in Cheongju (공공임대주택가구의 주거이동 유형에 관한 연구: 청주시 국민임대주택 퇴거자를 중심으로)

  • Ko, Jung-Hee
    • Korean Journal of Social Welfare
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    • v.61 no.2
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    • pp.33-60
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    • 2009
  • This study aimed at examining whether the national rental housing supplied by Korea National Housing Corporation (KNHC) is truly contributing to the upward mobility of housing in low-income households without their own house by comparatively analyzing whether those who moved out of the national rental housing made upward, horizontal or downward housing type mobility. The subjects of this study included 333 people who had moved out of three national rental housing complexes in Cheongju, Chungcheongbuk-do in 2007, which had opened to the first residents two years ago. A telephone survey involving the subjects was carried out. Collected data were analyzed through frequency analysis, cross tabulation analysis and multiple regression analysis, with using the type of residential mobility(downward mobility, horizontal mobility or upward mobility) according to "housing size" and "housing costs" as a dependent variable, and personal and family environment and economic environment as independent variables. According to the results of the analysis, 76.4% of the households made an upward mobility, 1.6% remained little changed, and 22% moved downward in terms of "housing costs," compared to before moving into the national rental housing and while living there. Furthermore, in terms of "housing size" 61.8% of the households moved upward, 16.5% remained little changed and 19.7% moved downward. The variables affecting the upward mobility of housing type included the number of income earners in a household, income earner's occupation and education level. Income earner's amount of income, age and family to support, on the other hand, turned out to have little effect on the upward mobility. Based on the results of the study, the following suggests were made for the supply of effective national rental housing. First, various features of each type of residential mobility should be reflected. Second, national rental housing residents' self-sufficiency should be enhanced to help them move upward in housing type.

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Determinants of Cross-Income Residential Location Decisions in the United States: The Case of Franklin County (교차소득 주거입지결정 요인에 관한 연구: 미국 오하이오주 프랜클린 카운티의 사례)

  • Jun, Hee-Jung
    • Journal of the Economic Geographical Society of Korea
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    • v.18 no.4
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    • pp.450-466
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    • 2015
  • This study examines why families move to neighborhoods at different levels of income. By analyzing a survey dataset of homeowners who sold and bought a house in 1999 in Franklin County, Ohio, in USA on their mobility decisions, this study examined the factors associated with cross-income residential location decisions. I categorized both survey respondents and neighborhoods into low-, middle-, and high-income levels and ran multinomial logit analyses for each of the low-, middle-, and high-income family groups to examine why families moved to neighborhoods at different levels of income. The analysis suggests that middle-income families moved to high-income neighborhoods because of school reputation and moved to low-income neighborhoods because of investment purposes.

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