Stuck in an Unequal Society: Wealth Inequality and Pessimistic Prospects on Future Social Mobility in South Korea

Abstract

Abstract Why do some people express optimism about their future social mobility, while others have a pessimistic view? This paper examines whether and how local wealth inequality is associated with individuals’ pessimistic or optimistic expectations of their future social mobility in South Korea. It argues that people in districts with greater economic inequality will have more pessimistic views of their future upward mobility, as high local inequality raises concerns among the public that their opportunities to move up the social ladder may be receding. Using economic inequality at the local level calculated using actual real estate transaction prices in South Korea from 2011 to 2018, the empirical results confirm the negative association between local inequality and individuals’ assessments of their future social mobility, particularly among residents in less affluent districts, those with low incomes, and those with a subjective awareness of belonging to a lower social class.