The purpose of this study is to summarize the current state and issues of income inequality in Korea and to show the impact of social transfer in kind(STIK) on the income distribution. In addition, development direction of income statistics are also d...
The purpose of this study is to summarize the current state and issues of income inequality in Korea and to show the impact of social transfer in kind(STIK) on the income distribution. In addition, development direction of income statistics are also discussed.
Korea's income inequality level should be viewed as the eighth highest OECD country in 2015, based on the results of the survey of household finances and living condition. The reasons for this are as follows: 1) the comparison of international standards is based on annual data, 2) confidence in the results of the survey of household finances and living condition whose main purpose is an income survey, 3) compatibility with market income inequality calculated by individual tax data, 4) the formal survey(household and expenditure trends survey) can be overly distanced from poverty levels and income inequality levels
In the international comparison of the income redistribution effect of social transfer in kind, the rate of decrease in income inequality measured by the Gini coefficient is 13%, which is lower than the OECD average of 20%. But the decrease in the poverty rate is 27%, it is very large compared to 10%.
Future income distribution statistics should be supplemented with administrative data on the basis of the survey of household finances and living condition, which is appropriate for the big data era.