Relative Deprivation in Consumption of Urban Poor Households in Korea: With Special Reference to Objective Deprivation

Abstract

Despite the rapid economic growth since the 1960s, the economic inequality has been exacerbated in Korea. This study analyzed the variables influencing the level of objective deprivation. For empirical analysis, this study used data on 602 households in the city of Inchon collected by the author through interviews. The major method used in this study was multiple regression. The findings were as follows: residential class was the most critical variable in determining the level of deprivation. For the entire sample, assets had stronger effects on the deprivation than nonasset income, but the two variables had different effects depending on residential class. For the poor residential class, the two variables had the significant effects. For the middle residential class, however, only the asset variable had significant effect. These results imply that the household consumption in Korea shows remarkable difference according to residential class, and that inequality of wealth, compared to that of nonasset income, has much more serious effects.