The Korean economy has been experiencing rapid changes and progresses both in its size and structure since the early 1960's. The priority attention of the economic policy during this period has been paid to mere economic groth. resulting in an income ...
The Korean economy has been experiencing rapid changes and progresses both in its size and structure since the early 1960's. The priority attention of the economic policy during this period has been paid to mere economic groth. resulting in an income inequality.
Such a policy generated a fremendous number of various kinds. The unemployment rate fell down by 4.8% in 1981 from 10% in the early 1960's. Functional and personal distribution of income appeared relatively equitable as compared with other developing and developed countries, measured in terms of the decile distribution ratio and the Gini index of concentration.
But the problem of income inequality arose in the middle of 1970's and it seems aggravated nowadays so that a vigorous redistribution policy of income is necessary to rectify the inequality problems in Korea.
The purpose of the study is to come up with alternative measures to deal with the problem of income inequality in a more efficient manner.
Generally, the fiscal and price policies as an income redistribution policy have many limitations to improve income inequality.
Therefore, the more equal income redistribution can only be achieved by social government expenditures. The social government expenditures largely involve three parts: 1) social security expenditure including the public assistance and social insurance expenditures 2) educational expenditure to promote equal opportunity of education 3) housing expenditure to subsidize or promote minimum dwelling standard for the lower-income groups. And So, the social government expenditures can be derived to achieve the equitable income redistribution obzectives.