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How does a change in income inequality affect public support for welfare policies in modern democracy? Contrary to previous views on the linkage between the two, the relationship between income inequality and welfare expenditure is not monotonic; rather, depending on societal conditions, an increase in income inequality may cause the public to either support the expansion of welfare or withdraw such support. Recognizing the level of inequality based on subjective social position, this study aims to examine societal conditions in South Korea by analysing the association between regional income inequality and the welfare budget of local governments. This study concludes that South Korea is likely on this path of inequality at present, and that Koreans themselves may be contributing to the worsening of the welfare of their society.

Inequality, public choice, and the welfare state