The Income Effect on Men and Women in East Asia

The Income Effect on Men and Women in East Asia: Before and After the 2008 Financial Crisis          

     East Asian countries had known for having rapid economic growth as well as income equality during the development trajectory. The picture had become dismal in the late years of 2000 as income distribution had been favoring the rich in Korea and Taiwan. The real wages even declined in Taiwan since 2005. Globalization has made the world economies more vulnerable to external dynamics. East Asian countries are particular so as the international trade activities are crucial to the economic growth in the region. The 2008 Financial Crisis started in the U.S. and many Americans experienced immediate job and investments loss and mortgage foreclosures. In 2011 a later-on worldwide well-known Occupy Wall Street movement occurred and lasted for several months in New York City in the United States. People in other countries also experienced economic misfortunes caused by the Financial Crisis, such as Greece, Italy, Portuguese, and Spain. East Asia countries are no exceptions. The economic growth rates dropped and unemployment rate increased in Taiwan, Korea, and Japan in recent years. The author wishes to study the impact on labor income because of the financial crisis. This paper uses four waves of East Asian Social Survey (EASS), conducted in 2006, 2008, 2010, and 2012 respectively, to study the (possible) decline of work earnings in real values and the deterioration of income inequality in Japan, South Korea, and Taiwan. Specifically the paper explores if women workers suffered the most due to their vulnerabilities in labor markets, controlling for generational and class differences.  Preliminary analyses show the increase of the proportions of labor in lower income categories and women being disadvantaged positions.