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Income mobility of elderly households in K orea
Author(s) -
Nam SuJung
Publication year - 2015
Publication title -
international journal of consumer studies
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.775
H-Index - 71
eISSN - 1470-6431
pISSN - 1470-6423
DOI - 10.1111/ijcs.12193
Subject(s) - multinomial logistic regression , consumption (sociology) , demographic economics , clothing , economics , logistic regression , labour economics , demography , geography , medicine , social science , archaeology , machine learning , sociology , computer science
According to the life‐cycle hypothesis, income is likely to decline in old age and individuals must consume out of previously accumulated savings. In this study, a secondary analysis of South Korean Retirement and Income Study data for the period 2005–2011 is carried out to investigate the income mobility of older households (i.e., those over 50 years of age) in South Korea. In particular, it was observed how income and consumption patterns change according to income mobility and identify those factors influencing income mobility by means of multinomial logistic regression. The changes in income pattern presented show that the unchanged and upwardly mobile groups substantially rely on income from work. Moreover, the changes in consumption pattern show that the proportion of food increased in 2011 for the unchanged and downward groups. Other items that significantly increased in proportion between 2005 and 2011 in the unchanged and downward groups were clothing, transportation/communication, health and medical expenses, and durable goods, while culture, education, and other consumption expenditure decreased. Finally, it was found that that the factors influencing income mobility include age, gender, and having one's own house.