Coronavirus Makes Income Gap Even Worse
23 May, 2020
Low-income households have been hit particularly hard by the economic slump compounded by the coronavirus epidemic and made income disparity in Korea worse in the first quarter.
Statistics Korea on Thursday said the income quintile share ratio, an integral gauge of income equality, reached 5.41 in the first quarter, up 0.23 percentage points in comparison to a year ago.
The ratio is calculated by dividing the income of the very best 20 percent of wage earners by the bottom 20 percent's, so the higher the worse.
The drastic hike in the minimum wage during the last two years was likely to level out incomes, however in fact the wages of low-income workers have been declining, partly because many small employers simply laid staff off.
Through the first quarter of 2018, the ratio soared to a record 5.95.
During January to March period, the common income of underneath bracket stood at W1.49 million, almost flat compared to a year ago (US$1=W1,231). However the top bracket's income rose 6.3 percent to W11.15 million.
The trend is likely to become a lot more pronounced in the second quarter when unemployment triggered by the epidemic is reflected in the figures.
Statistics Korea said, "You can't really make a positive forecast for job or income growth in the low brackets given the massive decline in temporary and menial jobs in April."
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