The Effects of Regional Characteristics on the Economic Well-being of Households in Korea: Using Hierarchical Growth Model

Abstract

Recent inequality research has emphasized the importance of a comprehensive perspective to investigate the causes of poverty in capitalist societies. In the same vein, various factors have been considered as poverty measures. The purpose of the present study was to examine the effects of regional characteristics on the level of and change in economic well-being for households in Korea. Economic well-being was employed to measure households’ poverty level which consists of household income, assets, liabilities. This study reviewed the level of economic well-being among households. As a primary analysis, three-level Hierarchical Growth Modeling was employed to examine the effects of regional characteristics on the level of economic well-being and the change of economic well-being over time. Data from KLIPS (7th to 19th waves) and Statistics Korea was used for analyses. The primary results of the present study are as follows. First, the level of and changes in households’ economic well-being varied widely across regions. Second, regional characteristics was associated with the level of and changes in the economic well-being households. In particular, the elderly population rate, the number of workers in the region, the fluctuation rate of land prices, the proportion of social welfare budget was associated with the economic well-being of households. Based on the results, poverty policy makers should take into account regional characteristics for poverty policies.