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Income Disparity, Income Change, and Future Expectation

  • Korean Society and Public Administration
  • Abbr : KSPA
  • 2014, 25(1), pp.141-168
  • Publisher : Seoul Association For Public Administration
  • Research Area : Social Science > Public Administration

Kum, Hyunsub 1 Baek, Seungju 1

1서울대학교

Accredited

ABSTRACT

The purpose of this study reviews the theoretical importance of future expectation in the relationship between subjective well-being and income, and explores the determinant factors of future expectation related to income change. Although the future expectation is individual’s crucial judgment concerned their various income change aspects, it hasn’t almost been discussed about how future expectation formed. In these respects, we investigate empirically the relationship between future expectation and income disparities, income mobility, and income stability. Empirical results show that experience of stable income increase raises future expectation, but income disparity compared with a reference group doesn’t affect future expectation when it considered with income changes. In addition, we found that income mobility and income stability have a synergy effect on the future expectantly. When people experience more stable income change even if they experience same income increases with others, people have a more positive future expectation. And when people experience an income increase even if they experience same income stability with others, people have a more positive future expectation, too. Based on these empirical results, we noted that stable income security plays a key role in forming a future expectation in policy reality.

Citation status

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

This paper was written with support from the National Research Foundation of Korea.