Identifying the Potential Influences on Income Inequality Changes in Korea – Population Subgroup Analysis

Younguck Kang

International Review of Public Administration, 2006, vol. 11, issue 2, 70-86

Abstract: This study measures the direction and size of contributions of a number of different individual characteristics on the significant increase in the household head wage income inequality indexes in Korea between 1988 and 2002. Based on the Urban Household Income and Expenditure Survey (UHIES) from the National Statistics Office (NSO), basic analysis based on the empirical findings suggests a strong market institution such as ‘seniority based’ salary system that limits the wage determination through market forces may have contributed to the statistically significant increase in the household head wage income inequality. The analytical tool used in this study is based on the Jenkins’ (1995) dynamic decomposition by population subgroup method for measuring the effect of potential influences.

Date: 2006
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DOI: 10.1080/12294659.2003.10805086

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