Towards Personal Financial Sustainability Based on Human Capital Analysis in Korea
Abstract
:1. Introduction
2. Models for Human Capital and Asset Allocation
2.1. Income Process
2.2. Risk of Income
2.3. Portfolio Model
3. Human Capital Analysis
3.1. Income Data
3.2. Fixed Effects Analysis
3.2.1. Fixed Effects Regression by Education
3.2.2. Fixed Effects Regression by Education and Industry
4. Life-Cycle Asset Allocation
4.1. Asset Allocation Based on Education Level
4.2. Asset Allocation Based on Education and Industry
5. Conclusions
Author Contributions
Funding
Institutional Review Board Statement
Informed Consent Statement
Data Availability Statement
Conflicts of Interest
References
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Survey Number | Year | Number of Households | Number of Individuals |
---|---|---|---|
1 | 1998 | 5000 | 13,321 |
2 | 1999 | 4507 | 12,037 |
3 | 2000 | 4266 | 11,205 |
4 | 2001 | 4248 | 11,051 |
5 | 2002 | 4298 | 10,966 |
6 | 2003 | 4592 | 11,541 |
7 | 2004 | 4761 | 11,660 |
8 | 2005 | 4849 | 11,580 |
9 | 2006 | 5001 | 11,756 |
10 | 2007 | 5069 | 11,855 |
11 | 2008 | 5116 | 11,734 |
12 | 2009 | 6721 | 14,489 |
13 | 2010 | 6683 | 14,118 |
14 | 2011 | 6686 | 13,899 |
15 | 2012 | 6753 | 13,998 |
16 | 2013 | 6785 | 13,887 |
17 | 2014 | 6838 | 13,168 |
18 | 2015 | 6934 | 14,011 |
19 | 2016 | 7012 | 14,202 |
20 | 2017 | 7066 | 14,475 |
21 | 2018 | 7090 | 14,444 |
High School | College | University | ||
---|---|---|---|---|
Coeff. | Intercept | 7.507 *** | 7.802 *** | 7.872 *** |
Family size | 0.059 *** | 0.051 *** | 0.044 *** | |
Marital status | 0.320 *** | 0.255 *** | 0.384 *** | |
Sample size | 23,510 | 7388 | 16,218 | |
R2 | 0.122 | 0.171 | 0.146 | |
Adj. R2 | 0.121 | 0.167 | 0.143 | |
F-statistic | 74.24 | 36.17 | 68.88 |
High School | College | University | |
---|---|---|---|
Intercept | −1.177 | −3.003 | −3.253 |
Age | 0.029 | 0.148 | 0.170 |
Age2/10 | 0.002 | −0.026 | −0.027 |
Age3/100 | −0.001 | 0.002 | 0.001 |
R2 | 0.937 | 0.939 | 0.923 |
Adj. R2 | 0.932 | 0.934 | 0.917 |
High School | College | University | |
---|---|---|---|
0.175 *** | 0.146 *** | 0.141 *** | |
0.005 *** | 0.010 *** | 0.005 *** | |
ρ | 0.633 ** | 0.335 | −0.011 ** |
Manufacturing | Transportation | |||||
---|---|---|---|---|---|---|
High School | College | University | High School | College | University | |
Intercept | 8.167 *** | 7.996 *** | 8.243 *** | 7.623 *** | 7.707 *** | 7.815 *** |
Family size | 0.068 *** | 0.082 *** | 0.007 | 0.053 *** | 0.043 | 0.039 |
Marital status | 0.225 *** | 0.210 *** | 0.351 *** | 0.416 *** | 0.556 *** | 0.232 ** |
Age poly. intercept | 1.320 | 2.238 | −1.942 | 1.558 | −5.920*** | 5.703 |
Age | −0.171 ** | −0.205 | 0.079 | −0.167 * | 0.353 *** | −0.425 * |
Age2/10 | 0.047 *** | 0.054 | −0.008 | 0.046 ** | −0.069 ** | 0.106 * |
Age3/100 | −0.004 *** | −0.004 * | 0.000 | −0.004 ** | 0.005 ** | −0.008 ** |
Manufacturing | Transportation | |||||
---|---|---|---|---|---|---|
High School | College | University | High School | College | University | |
0.129 *** | 0.132 *** | 0.099 *** | 0.110 *** | 0.105 *** | 0.103 *** | |
0.006 *** | 0.004 | 0.004 *** | 0.004 *** | 0.001 | 0.000 |
Risky Asset | Risk-Free Asset | |
---|---|---|
Annualized mean | 11% | 4% |
Annualized std. dev. | 24% | - |
High School | College | University | ||||
---|---|---|---|---|---|---|
Age | Risky Asset | Risk-Free Asset | Risky Asset | Risk-Free Asset | Risky Asset | Risk-Free Asset |
26 | 100% | - | 100% | - | 100% | - |
30 | 100% | - | 100% | - | 100% | - |
34 | 88.34% | 11.66% | 97.04% | 2.96% | 100% | - |
35 | 77.44% | 22.56% | 83.81% | 16.19% | 89.29% | 10.71% |
40 | 48.75% | 51.53% | 50.50% | 49.50% | 51.89% | 48.11% |
45 | 40.80% | 59.20% | 41.53% | 58.47% | 41.98% | 58.02% |
50 | 35.13% | 64.87% | 35.51% | 64.49% | 35.73% | 64.27% |
55 | 34.16% | 65.84% | 34.37% | 65.63% | 34.48% | 65.52% |
60 | 33.01% | 66.99% | 32.99% | 67.01% | 32.99% | 67.01% |
High School | College | University | |
---|---|---|---|
Construction | 0.653 | 0.283 | 0.030 |
Educational service | 0.495 | 0.331 | 0.057 |
Agriculture, forestry and fisheries | 0.600 | 0.516 | 0.086 |
Real estate and rental | 0.109 | 0.041 | 0.084 |
Accommodation and restaurant business | 0.216 | 0.273 | −0.321 |
Transportation | 0.576 | 0.238 | 0.071 |
Manufacturing | 0.086 | 0.011 | 0.110 |
High School & Manufacturing | College & Transportation | |||
---|---|---|---|---|
Age | Risky Asset | Risk-Free Asset | Risky Asset | Risk-Free Asset |
26 | 100% | - | 100% | - |
30 | 100% | - | 100% | - |
34 | 100% | - | 99.77% | 0.23% |
35 | 100% | - | 87.98% | 12.02% |
36 | 94.10% | 5.90% | 77.07% | 22.93% |
40 | 67.65% | 32.35% | 57.56% | 42.44% |
45 | 55.29% | 44.71% | 48.25% | 51.75% |
50 | 49.96% | 50.04% | 44.62% | 55.38% |
55 | 46.93% | 53.07% | 42.82% | 57.18% |
60 | 45.47% | 54.53% | 42.03% | 57.97% |
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Yu, J.; Lee, G.; Kim, J.H. Towards Personal Financial Sustainability Based on Human Capital Analysis in Korea. Sustainability 2021, 13, 2700. https://doi.org/10.3390/su13052700
Yu J, Lee G, Kim JH. Towards Personal Financial Sustainability Based on Human Capital Analysis in Korea. Sustainability. 2021; 13(5):2700. https://doi.org/10.3390/su13052700
Chicago/Turabian StyleYu, Jaeyong, Gunyoung Lee, and Jang Ho Kim. 2021. "Towards Personal Financial Sustainability Based on Human Capital Analysis in Korea" Sustainability 13, no. 5: 2700. https://doi.org/10.3390/su13052700