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11 - Inequality, Jobs, and Welfare

Published online by Cambridge University Press:  07 December 2023

Jaymin Lee
Affiliation:
Yonsei University, Seoul
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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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Publisher: Cambridge University Press
Print publication year: 2023

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  • Inequality, Jobs, and Welfare
  • Jaymin Lee, Yonsei University, Seoul
  • Book: The Tortuous Path of South Korean Economic Development
  • Online publication: 07 December 2023
  • Chapter DOI: https://doi.org/10.1017/9781009419352.011
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  • Inequality, Jobs, and Welfare
  • Jaymin Lee, Yonsei University, Seoul
  • Book: The Tortuous Path of South Korean Economic Development
  • Online publication: 07 December 2023
  • Chapter DOI: https://doi.org/10.1017/9781009419352.011
Available formats
×

Save book to Google Drive

To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Google Drive.

  • Inequality, Jobs, and Welfare
  • Jaymin Lee, Yonsei University, Seoul
  • Book: The Tortuous Path of South Korean Economic Development
  • Online publication: 07 December 2023
  • Chapter DOI: https://doi.org/10.1017/9781009419352.011
Available formats
×