Women's work and family income inequality in South Korea

Abstract

This study examines the influence of wives' income on family income inequality between married couples in South Korea. While some scholars have argued that the rise in married women's labor force participation is most frequent among wives whose husbands earn a low income, and thus lessens the inequality of family income, others have proclaimed that due to educational homogamy, the increased participation tends to reinforce family income inequality. Analyzing the Korea Welfare Panel Study data, this paper reports three things. First, wives' income tended to reinforce family income inequality. Second, the relative importance of wives' income in the change in family income inequality has increased due to wives' incomes taking a greater share of family incomes. Third, the combination of small difference in the average income of wives across husbands' income deciles and the rise in wives' labor force participation among the lower deciles of husbands' income tends to reduce family income inequality.