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Has "Rush to Higher Education" Reduced Poverty in Korea? : Analysis on the Urban Household Expenditure Survey 1985-2006

Sujeong Kim 1

1동아대학교

Accredited

ABSTRACT

This study explores the relationship between school education and poverty in South Korea. Special attention is given to the impact of rapid expansion of school attainment ("rush to higher education) on the poverty status for the last 20 years (1985-2006) using the Urban Household Expenditure Survey. Dividing the research period into two economically different times, I analyse the distribution effects and inequality effects of the expansion of school education each period. Research findings are as follows. Firstly, poverty rates of all educational strata reduced in the first period but increased steeply after the economic crisis in the second period. The economic crisis at the end of 1990s enlarges the poverty gap between the education groups. Secondly, higher education has a positive effect on escaping from poverty by changing the distributive effect of education. However, in the second period even the expansion of higher education continues, poverty risk of all groups tend to increase, making relatively low-educated people more vulnerable. Inequality effects overwhelmed positive effects of the distribution changes. Thirdly, after the economic crisis, economic status of high school graduates are downfallen, converted them into the vulnerable ("Degradation of the high school education"). As for the university graduates, the distribution change hasn't impact much but their relative advantage has been shrunk by the strong impact of the increasing economic insecurity.

Citation status

* References for papers published after 2023 are currently being built.