Factors Related to the Risk of a Substantial Income Decrease between 2006 and 2008 in South Korea
Hong, E.J. & Hanna, S.D. (2017). Factors related to the risk of a substantial income decrease between 2006 and 2008 in South Korea. The Singapore Economic Review, Forthcoming
28 Pages Posted: 21 Aug 2017
Date Written: August 16, 2017
Between 2006 and 2008, 9% of Korean households had an income decrease of 50% or more, a rate almost identical to the U.S., despite the much lower impact of the global financial crisis on Korea. We ran a logistic regression to determine factors related to the likelihood of a substantial income decrease between 2006 and 2008 for Korean households. The likelihood of a substantial decrease was low for households below the 75th percentile of 2006 income, probably due to differences in composition of income. Households with college education were less likely than those without college to have a substantial decrease.
Keywords: household income, global economic crisis, Korean households, Korean Labor and Income Panel Study
JEL Classification: D12, D14, D31, D33, D91, G01
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