This study analyzes the problem of poverty in Korea by identifying the decisive factors in employment patterns and family composition.
Poverty became a serious policy issue in the 1970s, with approximately 15 percent of all households in Korea being declared “poor” under the new poverty standard by 1976. The number of poor households has been on rise since 1974. The Gini coefficient, a commonly used quantitative measure of income inequality, does not adequately capture the problem of poverty as poor households actually experience it, and is therefore a rather poor tool for exploring and analyzing the problem of poverty in detail. The cross-section analysis, on the other hand, is capable of describing the factors and patterns of poverty in Korea from 1965 to 1976. The cross-section analysis is therefore the most effective tool of poverty analysis concerning Korea.
This study finds that approximately 25 percent of all poor individuals in Korea as of 1974 were economically active. Despite working, about five of the economically active poor people would be considered extremely impoverished. The Korean government can solve this problem of poverty-of-the-employed only by establishing an environment that guarantees stable employment and income. In addition, the government should also provide public assistance for the so-called “hardcore poor,” of economically inactive households without any sources of income.
Korea’s rapid economic growth has obfuscated the underlying problem of poverty until now, but no economic growth can be justified or sustained without ensuring long-term prospects and self-sufficiency for poor households. Once the problem of poverty is solved, we may also be better able to prevent the continuing concentration of population in urban and industrial areas.
우리나라 빈곤의 결정요인(Decisive factors of poverty in Korea)
취업상태와 가구원구성면에서의 분석
|Journal Title; Vol./Issue||한국개발연구:vol. 1(no. 4)|
|Subject Country||South Korea(Asia and Pacific)|
|Subject||Economy < Macroeconomics|
|Holding||KDI; KDI School|