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KMID : 1001320210480030295
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Social Welfare Policy
2021 Volume.48 No. 3 p.295 ~ p.325
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A Study of the Relationships among Household Income, Income Mobility, and Giving Behavior
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Kang Chul-Hee
Jung Hyun-Tak
Park Ji-Young
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Abstract
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The aim of this study is to examine the relationships among household income, income mobility, and giving behavior. For the examination, this study used the pooled data from the 1st through the 14th year of Korea Welfare Panel Study (KoWePS) and a logistic regression analysis method. This study has the following findings. First, when analyzing giving behavior by income bracket, it was found that giving probability consistently increases with higher household income. Second, when analyzing the relationship between income mobility and giving behavior, it was found that households in ‘downward mobility’ are less likely to participate in giving, while groups in ‘upward mobility’ are more likely to participate in giving when compared to groups showing ‘no income mobility.’ Third, when analyzing the effect of interaction between income mobility and household income, both downward mobility and upward mobility were found to have a combined effect in a negative direction with giving behavior when compared to ‘no income mobility.’ In particular, results from the graph analysis of interaction effect show that households with ‘downward mobility’ and household income of more than 40 million won are consistently less likely to participate in giving when compared to households having the equivalent income condition and belonging to ‘no income change’ or ‘upward mobility’.
This study is meaningful because it newly examined the interaction effect between income mobility and household income as well as the effect of income mobility on giving behavior. Thus, it established new knowledge about the effects of household income, income mobility, and the interaction of income and income mobility. This study implies that it is important to recognize that giving behavior is extremely sensitive to changes in income. It also implies that income stabilization policies are essential to expand the mind of considering and caring for neighbors. In addition, it implies that policy efforts to strengthen citizens’ motivation through tax benefits for giving is vital to reduce giving price and promote giving culture by every citizen. This study can have some limitations caused by the data from KoWePS, which has had oversampled low-income households. In the near future, more rigorous and advanced studies should be conducted based on more representative data and specified measures on income mobility and giving behavior.
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KEYWORD
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Income bracket, Income mobility, Giving behavior, Korea Welfare Panel Study
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