The purpose of this study is to analyze economical inequality with the aspect of the net worth along with the income on the basis of age cohort, particularly in regards to economic inequality after the recent financial crisis.
The analysis showed that,
First, economical inequality looked through the generalized entropy GE(1) index, inequality by the net worth is five times greater than that is by the income. And for age group, inequality within-group was found to be higher than that is between-groups. Also, during the 8 years of inequality expansion period, greater inequality was found between-groups rather than within-group and the inequality of the net worth was greater than the income inequality.
Second, the source of net worth Gini coefficient showed that nonfinancial asset has the highest coefficient while earned income coefficient marked the lowest. Financial asset and liability showed similar coefficient. In correlation between the net worth and source of the net worth, nonfinancial assets, financial assets, and earned income indicates the positive correlation while liabilities indicates the negative correlation. The absolute amount of correlation coefficient turned out to be in following orders, non-financial asset>financial asset>liability>earned income. As the age rises, convergence of absolute level of contribution has been found according to factors of the net worth.
Finally, by examining the growth latent model result, mean and variance of level of initial value for net worth is high for age groups of 30 and 60 respectively, but the high rate of change for both means of variance can be found in age group of 50. For earned income, initial means and variation is high in age 40 group, but the means and variance of rate of change turned up to be high in age 40 and 50 group, respectively.