Trends of Income Inequality Among the Elderly in Korea

This study investigates the overall trend of inequality among the elderly in Korea and to examine what the most influential factor is for these changes. Although inequality among the elderly is far greater than it is for any other group, little attention has been given to how inequality changes over time. Used are data from the Urban Household Survey with five-year intervals from 1986 to 2006. The results show that inequality within a cohort increases over time and that earnings and benefits from occupational retirement plans are the most influential factors on overall inequality changes. In addition, the impact of public transfers has gradually increased during the past twenty years. The results imply that our society needs to enact a social policy for lessening earnings inequality in the labor market and to increase public transfers for the elderly.