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Public Services and Household Consumption Expenditure Inequality : Comparing the Education and Health Expenditure of Korea and the United Kingdom

여유진 1 Sujeong Kim 2

1한국보건사회연구원
2동아대학교

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ABSTRACT

The purpose of this paper is to analyze the inequality effect of public services such as education and health services. To do this, we compare the Korean and the British household expenditure data. The empirical analysis using Gini decomposition methods shows that the gini coefficients of the total consumption expenditure in Korea and the UK are similar but in the education and health consumption, there's quite a different story. In terms of the contribution of the individual consumption item to the total consumption inequality, educational consumption in Korea accounts for one fourth of the total inequality. Comparing with the UK, the share of the education in Korean household expenditure is very high, the main contributor to the consumption inequality. In terms of health expenditure, as we can expect, Korea is more unequal than the UK which provides universal free health care service to all the citizens through the NHS. The share of health expenditure in Korea is three times bigger than that of the UK and the marginal inequality effect of health consumption is also higher in Korea, meaning that although Korea has expanded public health insurance, health consumption is still unequally distributed among the households, imposing relatively high burden in korean households. Unequal consumption in education and health means an inegalitarian and closed society, so the publicness of these services needs to be enhanced in Korea.

Citation status

* References for papers published after 2022 are currently being built.