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A Comparison of the Poverty and the Consumption Between Poor and Non-poor Elderly Households

Affiliations

  • Department of Economics, Cheongju University, Korea
  • Department of Social Welfare, Hallym University, Korea
  • Department of Economics, Chungbuk National University, Korea

Abstract


Background/Objectives: Our study examines poverty ratios, characteristics of expenditure trends, determinants of both total expenditure and individual expenditure items of poor households and non-poor households among elderly households. Methods/Statistical Analysis: We use the 1st–4th Korean Retirement and Income Study as a biannual panel data, and calculate the poverty rate, which is the ratio of the number of people (in a given age group) whose income falls below the poverty line of the total population. Also we compare poor elderly households with non-poor elderly households by estimation results of a regression model. Findings: Total expenses in poor elderly households are half as much as those of non-poor households. The income increase in non-poor households shows remarkable marginal effects on consumption expenditure, but poor households do not show a statistical significance except for food, housing and utilities. Marginal effects for necessary goods in poor households are bigger than those for non- necessary goods. On the other hand, marginal effects for clothing, transportation /communication, culture and health goods in non-poor households are bigger than those for non-necessary goods. Application/Improvements: Empirical results say that it is desirable to convert ongoing integrated benefit into individual benefit in the minimum living system in the near future.

Keywords

poverty ratio, consumption, poor household, non-poor household, marginal effects

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References


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