The Consumption Patterns of Low-Income Households and Their Policy Implications

Abstract

This study analyzed the consumption patterns of low income households in Korea. The issues this study is interested in are the burden low income households bear in meeting their basic needs. This study also examined the factors, such as employment instability, transfer income, and debt, that influence the consumption patterns of the poor. Because of diversity of needs, the poor could be divided into several groups according to composite of consumption items. The main items are housing, health, and education. Public transfer is not enough yet so it’s influence is weak. The social policy should support the poor be secure in the area like health, housing and education.