Book contents
- The Tortuous Path of South Korean Economic Development
- The Tortuous Path of South Korean Economic Development
- Copyright page
- Contents
- Figures
- Tables
- Preface and Acknowledgments
- Notes on the Romanization of the Korean Language
- Abbreviations
- 1 South Korean Economic Development in Perspective
- 2 The Great Tradition That Failed
- 3 Some Lights in the Dark
- 4 Kicking Off the Miracle
- 5 Contours of the High Economic Growth
- 6 Industrial Policy and Chaebol
- 7 Growth with Equity?
- 8 Crisis and Reform
- 9 The Slowing Engine of Growth
- 10 Industrial Policy and Firms
- 11 Inequality, Jobs, and Welfare
- 12 Questions for the Future
- Appendices
- References
- Index
11 - Inequality, Jobs, and Welfare
Published online by Cambridge University Press: 07 December 2023
- The Tortuous Path of South Korean Economic Development
- The Tortuous Path of South Korean Economic Development
- Copyright page
- Contents
- Figures
- Tables
- Preface and Acknowledgments
- Notes on the Romanization of the Korean Language
- Abbreviations
- 1 South Korean Economic Development in Perspective
- 2 The Great Tradition That Failed
- 3 Some Lights in the Dark
- 4 Kicking Off the Miracle
- 5 Contours of the High Economic Growth
- 6 Industrial Policy and Chaebol
- 7 Growth with Equity?
- 8 Crisis and Reform
- 9 The Slowing Engine of Growth
- 10 Industrial Policy and Firms
- 11 Inequality, Jobs, and Welfare
- 12 Questions for the Future
- Appendices
- References
- Index
Summary
Inequality of market income rose after the 1997 crisis and then leveled off while the government redistribution increased over the years; however, the transfer to the rich through the real estate market increased immediately before the crisis. The inequality of market income rose after the crisis as the massive layoff of workers and the slowdown of growth led to job shortages and as labor market dualism deepened between large enterprises’ and small and medium-sized enterprises’ workers and regular and non-regular workers. Inequality also widened as the labor share of income fell, though the rising share of capital income was retained within firms rather than distributed to households. Unions have often failed to represent the interests of the whole working class. Welfare expenditure has risen substantially to narrow the inequality of disposable income; however, the welfare system has problems of coverage and sustainability, which are aggravated by the population's aging.
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- The Tortuous Path of South Korean Economic Development , pp. 357 - 399Publisher: Cambridge University PressPrint publication year: 2023