A Comparison of Changes in Urban and Rural Income during the Covid-19 Period

Abstract

In this article, we analyzed changes in income urban and rural areas before and after the covid-19 outbreak using data from the Statistics Korea. When looked at by quarter, rural areas showed a consistent increase in gross income after 2019, whereas gross income for urban areas decreased year-on-year in the first and second quarters of 2021. However, rural residents were mostly in the bottom three income deciles, while only 20% of urban residents were in the same income deciles. The relative poverty rate in rural areas was about 20% or higher, and in urban areas it was around 10%. In rural areas, women and older adults were concentrated the lower income deciles. After the covid-19 breakout, the proportion of young and middle-aged people with an income less than 50% of the median income has increased in rural areas. Before the polarization in rural areas deepens, a plan must be prepared to reduce it.