Over the last six decades, the Republic of Korea experienced rapid economic and social development. Korea was able to ascend from the destruction of the Korean War and grow to the 15th largest economy in 2009 in Gross domestic products (GDP) terms.
Especially, the introduction of heavy and chemical industries (HCI) in the beginning of the 1970s influenced economic growth and social development strongly. While the living standards during the 1950s were similar to the standards in the poorest countries today, today Korea is one of the leading industries worldwide.
However, the mid-1990s were a turning point for inequality trends in Korea, caused by certain events like the Asian Financial Crisis (AFC) and the change of political power in 1997. This thesis analyzes and discusses the changes in inequality trends since the beginning of the 1990s until now. The focus lies on income inequality trends, the sources, and whether and to which extent it affects education inequality.
First, the theoretical framework is defined and explained. This thesis concentrates on interpreting income inequality by using mainly the GINI coefficient and income deciles. The methodology of income measures are elaborately described. The following chapter focuses on the Great Gatsby curve and social mobility. For this thesis, vertical intergenerational mobility is a matter of special importance, therefore, the paper unfolds the relationship between education and intergenerational mobility.
The third chapter, covers the main part of this thesis and starts with a general overview over the development in social structures since the 1980s. This section deals with the GDP growth rate trends, Korea’s decreasing fertility rates as well as labor market polarization and briefly identifies the reasons. Further consequences arising from e.g. a polarization of the labor market are addressed in the following chapter. It analyzes income inequality in general as well as in detail by focusing on GINI coefficients, decile ratios, and the trend of share of households.
Furthermore, it explains the sources behind an increasing income inequality, especially, regarding wage trends. The last section describes education trends during the last couple of years by analyzing expenditure and participation rates for private tutoring. It also briefly analyzes the contribution of education to intergenerational mobility and tries to answer whether income inequality leads to disadvantages among students.
Table of Contents
1 Introduction
2 Theory
2.1 Inequality measures – GINI coefficient and decile ratios
2.2 The Great Gatsby Curve and Social Mobility
3 Social disparities in South Korea
3.1 An overview over development in social structures since the 1980s
3.2 Income inequality – trends and driving forces
3.3 Education and Social Mobility
4 Conclusion
5 List of references
Research Objective and Topics
This thesis analyzes the evolution of income inequality trends in South Korea since the 1990s and explores the extent to which these disparities influence inequality in education and intergenerational social mobility.
- Analysis of income distribution using GINI coefficients and decile ratios.
- Examination of labor market polarization and its effect on wage disparities.
- Investigation into the impact of household income on private tutoring and educational inequality.
- Evaluation of the relationship between economic status and intergenerational social mobility.
Excerpt from the Book
3.3 Education and Social Mobility
In the process of industrialization and automation demand for skilled workers increased significantly and, consequently, educational opportunities expanded and became a crucial aspect on the labor market. According to the OECD (2011), 63 % of 25-34 years old achieved a higher level of education in 2011, the highest proportion among OECD countries. Increasing tertiary education caused a reduction of educational GINI. From 1970 to 2000, educational GINI index decreased by 0.3 while average school years increased from five to eleven years.
Within a few years, Korea achieved universal literacy, compared to its illiteracy of 70 % in the beginning of the 1950s. In 1970, around 70 % of primary and lower secondary school graduates continued and achieved the next level of education. In the beginning of the 1990s, entry rates for high school increased significantly and in 2007, almost all middle school graduates continued to high school. Nowadays 8 out of 10 high school graduates continue their education and go to college. This means however, the educational gap between the younger and the older generation is increasing. While today around 98 % of 25-34 year olds complete an upper secondary education, only 43 % of 55-64 year olds have the same level of education. It is expected entry rates for tertiary education will increase further in the coming years.
Summary of Chapters
1 Introduction: This chapter outlines the rapid economic development of South Korea and introduces the research focus on income inequality, its sources, and its relationship to education and social mobility.
2 Theory: This section defines the scientific methods used for analysis, specifically the GINI coefficient, decile ratios, and the theoretical link between income inequality and intergenerational mobility via the Great Gatsby Curve.
3 Social disparities in South Korea: This central chapter provides an empirical analysis of structural changes since the 1980s, trends in income inequality following the Asian Financial Crisis, and the role of education expenditure in reinforcing socio-economic gaps.
4 Conclusion: The final chapter summarizes the findings, confirming that while South Korea achieved rapid growth, persistent wage discrepancies and unequal access to private tutoring continue to challenge social mobility and equality.
5 List of references: This section contains the complete bibliography of all primary and secondary sources cited in the thesis.
Keywords
South Korea, Income Inequality, GINI coefficient, Social Mobility, Great Gatsby Curve, Labor Market Polarization, Education Inequality, Private Tutoring, Asian Financial Crisis, Intergenerational Mobility, Wage Dispersion, Economic Growth, Disposable Income, Household Wealth, Meritocracy
Frequently Asked Questions
What is the fundamental focus of this thesis?
The work examines the development of social disparities in South Korea, specifically focusing on income inequality and how these economic conditions affect educational opportunities and social mobility.
What are the central thematic fields covered in this study?
Key topics include the evolution of income distribution, labor market restructuring, the impact of demographic changes like aging, and the role of the educational system in perpetuating or alleviating class differences.
What is the primary objective or research question?
The thesis aims to analyze how income inequality trends have evolved in South Korea since the 1990s and whether these trends lead to significant disadvantages for students, thereby affecting intergenerational mobility.
Which scientific methods are employed throughout the text?
The author utilizes statistical analysis to interpret income distribution trends, primarily employing the GINI coefficient for measuring inequality and decile dispersion ratios to assess the gap between high- and low-income groups.
What topics are addressed in the main body of the work?
The main body breaks down the transition from heavy industry to an information society, the impact of the 1997 Asian Financial Crisis on income polarization, and the correlation between household income and private tutoring expenditure.
Which keywords best characterize this research?
The work is best characterized by terms such as Income Inequality, Labor Market Polarization, Social Mobility, Education Gap, and South Korea’s economic history.
How did the 1997 financial crisis change the economic landscape for South Korean households?
The crisis triggered a structural shift toward labor market flexibility, leading to a permanent increase in inequality, a widening gap between regular and temporary workers, and significant stress on the middle class.
Why is private tutoring considered a significant factor in educational inequality?
The study highlights that since high-stakes testing is critical for academic success, the inability of low-income families to afford the same level of private tutoring as wealthy families results in unequal opportunities, thus hindering meritocratic social mobility.
- Arbeit zitieren
- Annika Mietzon (Autor:in), 2016, Social disparities in South Korea, München, GRIN Verlag, https://www.grin.com/document/1312484
