Why household debt held by Korean seniors is problematic: An international comparison

Research output: Contribution to journalArticlepeer-review

Abstract

This paper analyzes why the household debt held by seniors in Korea is highly vulnerable, compared to the US and major European countries. Based on household-level micro data, seniors in Korea have lower income, lower income stability, and fewer financial assets than those in the US and European countries. In addition, the macro-financial environment over the last decade in Korea promoted debt accumulation. Hence, if Korean economy is hit by adverse macro-financial shocks, such as a sudden increase in interest rate or a decline in house prices, seniors in Korea are expected to be impacted most seriously.

Original languageEnglish
Pages (from-to)2080-2093
Number of pages14
JournalEconomics Bulletin
Volume36
Issue number4
Publication statusPublished - 2016

All Science Journal Classification (ASJC) codes

  • Economics, Econometrics and Finance(all)

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