The condition of asset poverty of the elderly In South Korea

Abstract

Recent studies on asset poverty of the elderly in South Korea have widely used the cross-sectional method. Yet, the cross-sectional approach is limited of use for understanding an important feature of poverty, such as changes in the poverty condition of particular individuals, as they grow older. To understand the actual living condition of the elderly over time, using the Korean Longitudinal Study of Ageing (KLoSA), I examined the asset poverty condition of the elderly between 2006 and 2016 from both cross-sectional and longitudinal approaches. In consideration of meaningful differences between different age groups, I divided the elderly population as "middle-aged," "young-old," and "old-old." When using the cross-sectional approach, findings showed that there were no substantial differences in the asset poverty across age groups although the income poverty rate of the old-old was three times higher than that of the middle-aged. Longitudinal analysis revealed that wealth mobility was more likely to occur among relatively younger age groups, and older people have difficulties in improving their poverty conditions over time. Our findings suggest that for the asset poor in the old-old group, it is necessary to enhance the social security system in South Korea.