Senior citizens wait for the delivery of meals offered for free at a park in Seoul on Aug. 2, 2021. (Yonhap)
SEOUL, June 16 (Korea Bizwire) – The expanding proportion of seniors since the mid-1990s has exacerbated income inequality among households nationwide, the central bank said Thursday.
South Korea’s Gini coefficient for market income gradually increased for older age groups until individuals reached their 50s, but it experienced a significant spike among individuals in their 60s and older, according to the report published by the Bank of Korea (BOK).
An analysis of each age group using the Theil index revealed a consistent spike in income inequality among individuals aged 60 and above throughout the entire study period.
The report highlighted that basic conditions affecting income levels, such as educational backgrounds, had a more significant impact as people grew older.
The higher proportion of seniors experiencing income inequality constituted approximately 30 percent of nationwide income inequality from 1996 to 2021.
Since 2010, business and real estate income accounted for no more than 11 percent of the Gini coefficient among individuals aged 50 and younger.
However, it accounted for 31 percent among those aged 60 to 69 and 39 percent among individuals aged 70 and older.
M. H. Lee (mhlee@koreabizwire.com)
