Abstract
ABSTRACT This study examines the effects of residential areas and regional characteristics on household income mobility in Korea using a dynamic ordered probit model. The results demonstrate that households located in metropolitan areas are more likely to belong to the higher income quintile compared with households located in non-metropolitan areas. However, population growth in non-metropolitan areas was confirmed to have a positive effect on upward mobility associated with household income, while population growth in the metropolitan area negatively affected upward mobility. The findings support the legitimacy of the population distribution policy, which implies the need for the government to pursue a regionally balanced development policy more vigorously.
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