Survey Shows Income Inequality Increasing

The wage gap between individuals with different levels of education has been widening because the average wage of college graduates has been increasing at a faster rate than other groups.

The average monthly income of college-graduate heads of urban households reached 3.54 million won in the third quarter of this year, up 8.7 percent compared to the same period in 2006, according to the National Statistics Office on Monday.

However, the average monthly income of primary-school graduate heads of households increased from 1.14 million to 1.22 million won, up 7.7 percent in the same period, while that of middle-school graduate heads of households increased from 1.37 million won to 1.41 million won, a mere three percent increase.

Yet, the increase in the average monthly earnings of high-school graduate heads of households surpassed that of college-graduate heads of households with a nine percent increase. The survey shows that high-school graduate heads of households earned an average of 2.36 million won per month in the same period.

The wage disparity between school levels has continuously increased over the past four years.

The difference in incomes between college graduates and elementary school graduates sharply increased from 2.57 times in the third quarter of 2004 to 2.64 and 2.90 times in the same period of 2005, and 2007, respectively. The income split between college graduate and high-school graduate heads of households also slightly increased from 1.42 times in 2003 to 1.50 times in 2007.

jarrett@donga.com