Publication Type
Journal Article
Version
acceptedVersion
Publication Date
4-2021
Abstract
Using data from the Korea Labor Income Panel Study, we study the evolution of income risk and consumption insurance against transitory and permanent income shocks in South Korea over the last two decades. We find a decreasing trend in both income and consumption risks. Furthermore, we estimate that 47.6% of permanent income shocks and 9.8% of transitory income shocks pass through to consumption. We also provide evidence of substantial improvements in consumption insurance among the less educated and the older cohort nearing retirement. Our results suggest that recent developments of social safety net and welfare system may have played an important role in insuring income shocks in South Korea.
Discipline
Asian Studies | Behavioral Economics
Research Areas
Applied Microeconomics
Publication
Oxford Bulletin of Economics and Statistics
Volume
83
Issue
2
First Page
328
Last Page
351
ISSN
0305-9049
Identifier
10.1111/obes.12404
Publisher
Wiley
Citation
AHN, Taehyun; CHEE, Chung Gu; and KIM, Seonghoon.
The evolution of income risk and consumption insurance in South Korea over the last two decades. (2021). Oxford Bulletin of Economics and Statistics. 83, (2), 328-351.
Available at: https://ink.library.smu.edu.sg/soe_research/2439
Copyright Owner and License
Authors
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.
Additional URL
https://doi.org/10.1111/obes.12404