Lee paper on social consequences of economic segregation published in Korean Economic Review
Jun 30, 2013
Social Consequences of Economic Segregation
Yoonseok Lee, Donggyun Shin & Kwanho Shin
The Korean Economic Review, June 2013
The empirical literature has not been successful in generating robust results for a positive
relationship between income inequality and social unrest outcomes such as crime and
suicide. This paper questions the use of standard income inequality measures (e.g., Gini
coefficient) in such studies and shows that income-mobility-based measures are effective in
explaining outcomes of social unrest. Analyses of Korean and the United States region-by-year data suggest that crime and suicide rates are better explained by income immobility
(i.e., the degree of economic segregation) rather than the inequality aspects of income
distribution. The explanatory power improves as a heavier weight is placed on the poor
group's degree of immobility. Findings in the current study will be helpful for guiding
future efforts to develop more effective measures of social unrest.