Consumption Pattern Benefits of the Cultural Activities in South Korea

Abstract

This study examines the relationship between the cultural consumption pattern and an individual’s subjective well-being. We divide the consumption pattern of cultural activities by frequency, diversity, and inclusion and estimate the monetary value of the participation in culture and arts activities through the marginal rate of substitution. To reduce omitted variable bias, various factors are controlled for, such as basic demographics and satisfaction with personal relationship, class awareness, subjective income level, charitable donations and voluntary activities. The results show that the consumption of cultural activities can improve the individual’s subjective well-being, thus suggesting the use of cultural vouchers. Specifically, we find that the coefficients on frequency are positive and statistically significant, indicating that the cultural activities in Korea have a positive relationship with an individuals’ subjective well-being. Our research provides insight to the government organizations involved in the promotion of leisure policies.

1. Introduction

Many extant studies show that leisure activities improve individuals’ subjective well-being [1,2,3,4,5], while others focus on the benefits of the aesthetic value inherent to cultural activities [6,7]. Studies focusing on the benefits of cultural and artistic consumption are also being conducted in South Korea [8,9], finding that the frequency and diversity of cultural and artistic consumption enriches the lives of individuals.

In South Korea, emphasizing the advantages of cultural arts occurs not only in academia but also in government policy. Korean Government’s “Framework Act on Culture” (According to the Framework Act on Culture, Article 2 (Fundamental Ideas), the fundamental ideas of this Act are to recognize the significance of culture in developing a democratic nation and enhance the subjective well-being for individual citizens) states that arts improve the subjective well-being and play an important role in the development of the national society. However, the role of cultural arts for the welfare of individuals is not limited to this declaration. The Korean government is presently undertaking a substantial project in the field of culture and arts, with the national treasury subsidies ranking sixth out of a total of 42 sectors. (South Korea’s 2021 national budget is USD 492 billion, of which USD 85.5 billion represent state subsidies. The sectors with the highest national treasury subsidies are health (46.3%), land transportation (8.9%), agriculture, forestry and livestock (8.2%), employment (7.1%), environment (6.8%). National treasury subsidies allocated to leisure areas such as culture, art, and tourism and sports are USD 3.8 billion, or around 4.4%). Therefore, research on the benefits of consuming culture and arts, as a precursor for the diagnosis and planning of cultural policy, should be ongoing in South Korea.

From an international perspective, South Korea joined the UNESCO Convention on the Protection and Promotion of the Diversity of Cultural Expression in 2007. Additionally, in 2021, South Korea chaired the 14th session of the Intergovernmental Committee of the 2005 Convention on the Protection and Promotion of the Diversity of Cultural Expressions. (The scope of culture under the “Convention on the Protection and Promotion of the Diversity of Cultural Expressions” is defined in a broad sense and includes social customs, rituals, food, language, etc. However, in this research, we will limit ourselves to cultural and artistic services). Cultural diversity is defined as the culture of a group or society expressed in a variety of ways, emphasizing freedom of choice and diversity on the supply side (e.g., production or creation) as well as the consumption side (e.g., enjoyment). (The term “cultural diversity” refers to the various ways in which the cultures of groups and societies are expressed. These expressions are passed down within and between groups and societies. Cultural diversity is evident not only through the various ways in which human cultural heritage is expressed, expanded, and inherited through various cultural expressions, but also through artistic creation, production, dissemination, distribution, and the enjoyment of various styles, regardless of the method and technology used). Therefore, there should be no restrictions on the diversity of supply and consumption, since this would facilitate diverse and inclusive economic and social structures that enrich people’s lives. The diversity of arts consumption can be understood in the same context as the breadth of preference, which originates from the omnivore theory postulated [10]. In this context, omnivore refers to people who belong to the upper classes of a particular society traditionally having a wide preference for not only elite cultural and artistic genres but also for lower-class genres [10]. As such, the research on the consumption of arts should consider the frequency and diversity of consumption, with the accrued benefits of each consumption type also being important.

Many studies have investigated the impact of diversity in arts consumption on the subjective well-being [6,9,11]. Previous studies have generally defined consumption diversity as a repertoire variable operationalized as a count one. Therefore, with conventional diversity variables, there is the limitation that only the consumption type can be grasped, while the ratio of each type cannot. Therefore, we have applied the Herfindahl–Hirschman index (HHI), which considers both diversity and weight at the same time, and used this as a diversity variable [12,13].

In addition to the cultural diversity agenda, an emphasis on inclusion is also required. The reason why inclusiveness is important is that, even if cultural goods and services grow quantitatively and qualitatively, if inclusiveness is not considered, a situation wherein only some individuals have access to cultural goods can occur. To prevent this, cultural diversity policies should not exclude anyone from any processes, processes being the production and distribution of, as well as the participation in, culture. A previous study on marketplace exclusion allows the benefits of inclusion on consumption to be analyzed [14,15,16,17,18,19]. Therefore, our study examines whether the frequency of arts consumption has a positive impact on the subjective well-being. We also analyze the impact of diversity and acceptance indices on the subjective well-being, considering the proportion of genre consumption. Finally, we estimate the value of culture consumption by converting the utility of culture and arts consumption in financial terms. These results provide clear suggestions for policymakers.

The remainder of this paper is organized as follows. Section 2 discusses the potential effects of cultural consumption and the patterns of the individual subjective well-being and reviews the literature. Section 3 describes the data and empirical strategy for the analysis. Section 4 presents the empirical results, showing the effects of arts and cultural activities on the individual subjective well-being. Finally, Section 5 draws conclusions and presents the policy implications for government organizations.

2. Background

2.1. Right to Culture and Cultural Consumption

The right to culture implies the right to enjoy life from the cultural dimension in addition to necessities such as food, clothing, and a place to live. The discussion on the right to culture begins with the United Nation’s (UN) Universal Declaration of Human Rights in 1948. Article 27 of the Declaration states that everyone has the right to freely participate in the cultural life of the society to which he/she belongs, to enjoy art, and share academic progress and its benefits. The Action Plan on Cultural Policies for Development, adopted at the International Conference on Cultural Policies for Development (The “International Conference on Cultural Policies for Development” was held in 1998 in Stockholm, Sweden. This conference set the purpose, emphasized the diversity, and expanded the scope of cultural policy to include welfare. The main contents are as follows: (1) consider cultural policy a key component of development strategy, (2) promote cultural and linguistic diversity in and for the information society, (3) promote creativity and participation in cultural life, (4) reinforce policy and practice to safeguard and underscore the importance of the tangible and intangible heritage and promote cultural industries, and (5) make more human and financial resources available for cultural development [20]), states that accessing and participating in cultural life is a fundamental right of the individuals within a community. Additionally, the definition of culture and cultural rights states that the right to culture is a right that contains the universal values of human beings, which is an area of concrete human rights practice [20] and a personal right [21]. It is also a public right used for cultural heritage, people’s cultural identity, and cultural development [22,23]. Furthermore, it is based on the desire for diversity [24]. The United Nations Sustainable Development Goals (SDGs). mentions inclusiveness in other areas, such as environment and labor, in addition to cultural inclusiveness. The pursuit of equity improves the conditions that can create equal opportunities for all. Inclusiveness in cultural consumption implies being free of leisure constraints. Leisure constraints are factors that prevent an individual from participating in leisure activities such as cultural activities [25,26]. Even if an individual has an intention for consumption, leisure constraints effectively prevent them from participating. The components of leisure constraints are financial margins, time, preferences, disabilities, and social isolation, among others [27,28,29,30], and have a greater impact on the socially vulnerable. The ultimate goal of right to culture, under the leadership of the government, is to ease the consumption constraints of the socially vulnerable.

Considering these claims, cultural rights can be distinguished by the enjoyment of rights and participation rights, equal rights, access rights, and creative rights. The Korean Constitution also mentions national obligations (Article 9), equal rights (Article 11), freedom of expression (Article 21), and liberty rights (Article 22). However, classifications of cultural rights offer a direct range over which a country must establish its cultural policy. In particular, long-term policy implementation can be diagnosed through detailed classification, and a clear promotion plan can be established. In the long run, this will be the basis for a claim as a legal right.

In short, cultural rights require governments to provide the minimum conditions and services necessary to enable individual citizens to participate in cultural activities (or creative activities) and enjoy life.

2.2. Benefits of Cultural Consumption

There is considerable research on the benefits of cultural consumption. In general, cultural services are experience goods [31] and continuous experience determines the taste for them [32]. The benefits that occur when consuming cultural services improve the subjective well-being [8,33,34] as they provide aesthetic value, a pleasurable experience, mental satisfaction, and psychological stability [11].

Management studies also argue that diverse consumption provides greater benefits to individuals [35,36,37,38]. In this respect, we question the causal relationship between cultural omnivores and utility. Omnivores is a reference to the fact that high-ranking people in the American society in the 1980s and 1990s participated in various high-class and popular cultural activities [10,39]. Previous studies emphasize that cultural consumption is not about exclusion by class, but about the preference for diversity and fusion [40,41].

To define this relationship, many researchers have conducted research on the diversity of cultural consumption [6,9,11]. As previously mentioned, extant studies have generally defined consumption diversity as a repertoire variable operationalized as a count variable. However, one-time and repeated consumption are considered as the same consumption of one genre. Therefore, traditional repertoire variables have omitted information about the percentages of consumption. Therefore, we apply the HHI, as it can consider the diversity and weight of consumption [12,13]. Specifically, the HHI shows market concentration and the competitiveness of companies by examining the market share within the industry and can, thus, confirm whether individual consumption is lean (or diverse). Many studies have been conducted using HHI as a diversity variable on topics such as diets [42,43], media [44,45], ethnicity [46,47], energy [48,49], language [50,51], and biological diversity [52]. In this study, we use diversity variables, considering each type of weight. Our variables help us understand whether consumption diversity increases utility or whether other factors, such as immersiveness, need to be considered.

We also define the inclusiveness of consumption as the situations in which participants are not excluded from the majority and can choose to consume without restrictions. Inclusiveness is a major issue frequently mentioned in the context of diversity. In particular, international organizations such as the Organization for Economic Co-operation and Development, UN, and World Economic Forum emphasize inclusive growth in the context of economic growth.

Cultural consumption constraints are associated with several factors (e.g., financial, time, and physical constraints) and arise primarily from a minority [8,53,54,55,56]. The presence of sufficient constraints results in non-participation [57]. Therefore, in the presence of consumption constraints, the inclusiveness of consumption is low. Policy makers must thus assist consumption for people with low acceptance, and our inclusiveness of consumption variable shows a causality between the consumption possibility (conditions) and subjective well-being.

3. Methods and Data

3.1. Data

We use Korean Social Survey data from 2017 to 2019 provided by Statistics Korea to conduct the empirical analyses in this study. (These data were surveyed before COVID-19 targeting domestic residents). The Korean Social Survey is conducted annually but is divided into two categories, each one being surveyed in alternate years. (Family, education and training, health, crime and safety, and environment are investigated in even years, while welfare, social partition, culture and leisure, income and consumption, and labor are investigated in odd years). This survey, being a representative survey for Korea is thus suitable for our research, as it provides information on basic demographics and satisfaction with personal relationship, class awareness, subjective income level, charitable donations, and voluntary activities, as well as measures subjective well-being. Subjective well-being has been measured according to the response to the following question: “Overall, how satisfied are you with your life these days?” Our dependent variables capture subjective well-being on a five-point scale, where 1 is “very dissatisfied” and 5 is “very satisfied”. (In the survey, 1 stands for “very satisfied” and 5 for “dissatisfied,” but we used reverse coding for the convenience of interpretation). Satisfaction with personal relationships (social networks, participation in community activities), trustworthiness of society, class awareness, and the subjective income level are weighed equally. The consumption measure was derived from the following question: “Did you visit any of the following events or venues for the past year? If yes, how many times did you visit them?” with the measured arts activities being museums, art galleries, music, plays and musicals, dance performances, and movies. (Watching sporting and other events was also reflected by one of the questions asked in the survey, but is not considered in this study). Inclusiveness in the consumption of culture was measured by the response to the following question: “Have your living conditions improved as compared to previous survey?” This variable surveys how the conditions for consuming culture and leisure have changed (e.g., time and economic conditions enabling culture and leisure life, cultural and leisure facilities, and institutional aspects).

3.2. Empirical Framework

This section describes the empirical strategy. Since our dependent variables are measured on an ordered scale, we perform empirical analysis using the ordered logit model. Our empirical analysis assumes the underlying process is characterized as follows:

$$y^{*}={\displaystyle \sum }_{k=1}^k{\beta }_k{x}_k+ϵ$$

where $y^{*}$ is the exact but unobservable response variable and $ϵ$ is the error term for the finally observable response y. If the number of selectable y is N, it can be expressed as follows:

$$\mathrm{y}=\left\{\begin{array}{c} 0 if y_i^{*}\le {\theta }_0 \\ 1 if {\theta }_0<y_i^{*}\le {\theta }_1\\ 2 if {\theta }_1<y_i^{*}\le {\theta }_2\\ ⋮\\ N if {\theta }_{N-1}<y_i^{*} \end{array}\right.$$

where parameters $\theta$ are the means endpoints on $y^{*}$ and we choose $\delta$ from N observable responses. The probability that y chooses $\delta$ is calculated as follows:

$$\mathrm{Pr}\left(y_i\le \delta \right)=\mathrm{Pr}\left(y^{*}\le {\delta }_N\right)=\frac{e^{{\delta }_N-{{\displaystyle \sum }}_{k-1}^k{\beta }_k{x}_k}}{1+e^{{\delta }_N-{{\displaystyle \sum }}_{k-1}^k{\beta }_k{x}_k}}$$

where $y_i$ is an index of individual i’s subjective well-being level. We build five models according to the type of independent variables as follows: (1) the frequency of consumption of all arts; (2) the frequency of consumption, by genre, of arts; (3) the diversity of cultural consumption (HHI); and (4) the inclusiveness on the consumption on whole arts. In general, the HHI is derived by squaring the market share (%) of each firm in the market and then summing the resulting numbers. Therefore, our diversity index is calculated by squaring the share of consumption on arts from each genre and summing the resulting numbers. Then, for interpretation convenience, we take the multiplicative inverse and define it as the diversity index. However, the diversity index is derived from the sum of total cultural consumption. Unlike other genres, the frequency of movies is high, which can cause distortion in the diversity index. (For consumption of cultural activities, cultural capital acquired at home or an institution (education, training, etc.) is required [58]. Cultural activities possess characteristics such as aesthetic, spiritual, social, historical, symbolic, and authentic values, but the level of each value differs by genre [59]. Due to these differences in genre-specific values, there is a difference between the level of cultural capital required for consumption and the marginal utility that occurs [11]. To take into account such differences between genres, we conduct an empirical analysis by classifying by detailed genre). We check the coefficient on the diversity index, excluding film consumption, to verify robustness against this outlier. We used change in the living condition of culture (or leisure life) as a variable for culture consumption inclusiveness.

In all equations demographics (age, sex, education level, material status, labor force, household income disability, area) and specific satisfaction (personal relationship, class awareness, subjective income level) were controlled for. Some previous studies have included health satisfaction as a specific satisfaction type [60,61,62,63,64]. However, since this variable had not been included in our data, we instead controlled for disability, since it can represent the health condition of individuals. The GDP deflator was not applicable because the household income was given according to a nine-point scale, with the interval between measurements being KRW 1 million (approximately USD 881.45).

Finally, we estimate the value of culture consumption by converting the utility of culture and art consumption in financial terms. These results provide clear suggestions for policymakers. We also apply random utility theories of choice. First, the utility of the choice alternative can be expressed as follows:

$${\mathrm{U}}_{in}=V_{in}+{\epsilon }_{in}$$

where ${\mathrm{U}}_{in}$ is the total utility of $i$ for alternative n. $V_{in}$ is the deterministic utility or systematic utility of $i$ for alternative n. ${\epsilon }_{in}$ is the random utility or stochastic utility of $i$ for alternative n. The probability of selecting each alternative is as follows:

$$\begin{array}{ll}{P}_n\left(i\right)& =Prob\left(U_{in}\ge U_{jn}, j\in C_n\right)\\ & =Prob\left(V_{in}+{\epsilon }_{in}\ge V_{jn}+{\epsilon }_{jn}, j\in C_n\right)\\ & =Prob\left(V_{in}-V_{jn}\ge {\epsilon }_{in}-{\epsilon }_{jn}, j\in C_n\right)\end{array}$$

where $P_n\left(i\right)$ is the probability that individual n chooses alternative $i$ and $C_n\left(i\right)$ is the set of alternatives that an individual $n$ can choose from. This is expressed in the form of an attribute vector of the decisive utility function as follows:

$$V_{ij}={\beta }_1{Z}_{1ij}+{\beta }_2{Z}_{2ij}+\cdots +{\beta }_n{Z}_{nij}$$

The marginality-to-pay is derived as the coefficients on household income (${\beta }_1$) and cultural consumption (${\beta }_2$) from the decisive utility function as follows:

$$MWT{P}_{Zn}=\frac{d{Z}_2}{d{Z}_1}=\frac{{\beta }_2}{{\beta }_1}$$

4. Results

This section reports the descriptive statistics and the empirical results for the effects of the cultural consumption pattern on the subjective well-being using ordered logit regression. (All variables, except for the education level, were statistically significant. Among the education level variables, only university/college was statistically significant, which means that only higher education has a positive effect on subjective well-being). The descriptive statistics of the variables used in the empirical model are presented in

Table 1. Descriptive statistics.

Variable	Mean	%	Std. Dev.	Skewness	Kurtosis
Subjective well-being	3.197		0.954	−0.020271	2.936693
Satisfaction with personal relationships	3.600		0.838	0.009631	2.824241
Class awareness	2.736		1.070	−0.004584	2.525686
Subjective income level	2.319		0.907	0.391479	2.773832
Charitable donation (base = no)				1.135398	2.289128
yes		25.3%	0.435
Volunteer activities (base = no)				1.478600	4.057602
yes		17.1%	0.376
Age	48.606		18.721	−0.008035	2.200657
Sex (base = male)				−0.089611	1.008030
female		52.2%	0.500
Education level (base = elementary school)				−0.544725	2.019121
middle school		13.1%	0.337
high school		35.1%	0.477
college/university		33.6%	0.472
Material status (base = never married)				0.876507	4.204626
married		61.3%	0.487
widowed/divorced		8.9%	0.285
separated		5.4%	0.226
Labor force (base = yes)				−0.339820	1.115477
none		41.6%	0.493
Household income	3.365		2.119	0.932449	3.279597
Disability (base = yes)				−3.732805	14.93384
none		94.1%	0.236
Area (base = Seoul)				−1.167359	1.605112
Busan		5.6%	0.230
Daegu		4.9%	0.216
Incheon		5.2%	0.223
Gwangju		3.9%	0.194
Daejeon		3.9%	0.194
Ulsan		4.0%	0.197
Sejong		3.2%	0.175
Gyeonggi-do		12.9%	0.335
Gangwon-do		5.4%	0.226
Chungcheongbuk-do		5.7%	0.232
Chungcheongnam-do		6.3%	0.243
Jeollabuk-do		6.1%	0.240
Jeollanam-do		5.7%	0.233
Gyeongsangbuk-do		6.8%	0.251
Gyeongsangnam-do		7.2%	0.259
Jeju		3.7%	0.189
Frequency of participation in all cultural activities	4.282		5.766	1.855350	6.90001
Frequency of participation in museums	0.350		0.978	3.253739	13.64256
Frequency of participation in art galleries	0.239		0.797	4.107092	21.19242
Frequency of participation in music	0.291		0.860	3.627101	17.03088
Frequency of participation in performing arts	0.252		0.807	3.977544	20.11658
Frequency of participation in movies	3.150		4.494	1.894551	6.624102
Diversity of consumption index (HHI)	−0.753		0.279	0.601320	1.767708
Diversity of consumption index (HHI of exclude movie)	−0.125		0.253	0.0781590	0.305823
Inclusiveness of consumption	3.412		0.789	−0.3477354	3.590959
Year (base = 2017)				0.0317957	1.001011
2019		49.2%	0.500
Obs.	37,060

(Some of the independent variables in regression equation have skewness and kurtosis that violate normality, and in such cases, we may perform arbitrary outcome transformations to satisfy the normality assumption. However, if the sample size is large, such measures may not be necessary and the estimated coefficients may be biased. We employ logistic regression analysis in particular, which is not constrained by normality assumptions). Our total sample consists of 37,060 individuals. According to the results, the average age of the individuals is 48.606 and the average satisfaction on subjective well-being 3.197. Further, the average satisfaction with personal relationships is 3.600 and the average class awareness and subjective income level are 2.736 and 2.319, respectively. Of the sample, 25.3% had no experience in donating and 17.1% participated in volunteer work. Regarding cultural activities, the average of frequency of participation in all cultural activities is 4.282 times. More specifically, the frequency of movies is 3.150 times, while that of museums is 0.350 times, of music 0.291 times, of performing arts 0.252 times, and of art galleries 0.239 times. The average and standard deviation for the diversity of consumption index are −0.782 and 0.260, respectively. The average and standard deviation for diversity of consumption index excluding movies are −0.125 and 0.253, respectively. The inclusiveness of consumption on cultural activities is 3.412 on average.

In

Table 2. Ordered logit model estimates.

Subjective Well-Being	Model 1		Model 2		Model 3a		Model 3b		Model 4
	Coef.	p-Value	Coef.	p-Value	Coef.	p-Value	Coef.	p-Value	Coef.	p-Value
Satisfaction
personal relationship	0.701 (0.015)	0.000	0.699 (0.015)	0.000	0.770 (0.021)	0.000	0.814 (0.029)	0.000	0.662 (0.015)	0.000
class awareness	0.427 (0.013)	0.000	0.424 (0.013)	0.000	0.457 (0.019)	0.000	0.434 (0.027)	0.000	0.415 (0.013)	0.000
subjective income level	0.690 (0.015)	0.000	0.689 (0.015)	0.000	0.634 (0.020)	0.000	0.634 (0.028)	0.000	0.644 (0.015)	0.000
Charitable donation (base = no)
charitable donation	0.126 (0.026)	0.000	0.112 (0.026)	0.000	0.160 (0.032)	0.000	0.182 (0.043)	0.000	0.148 (0.026)	0.000
Voluntary activities (base = no)
voluntary activities	0.154 (0.034)	0.000	0.136 (0.034)	0.000	0.128 (0.040)	0.001	0.140 (0.050)	0.005	0.163 (0.034)	0.000
Sex (base = male)
female	0.086 (0.029)	0.003	0.074 (0.029)	0.012	0.010 (0.039)	0.798	0.015 (0.054)	0.781	0.079 (0.029)	0.006
Age
age	−0.008 (0.001)	0.000	−0.008 (0.001)	0.000	−0.013 (0.001)	0.000	−0.016 (0.002)	0.000	−0.011 (0.001)	0.000
Education (base = elementary school)
middle school	−0.020 (0.040)	0.617	−0.021 (0.040)	0.608	−0.108 (0.093)	0.929	−0.086 (0.144)	0.551	−0.018 (0.040)	0.653
high school	0.034 (0.037)	0.358	0.032 (0.037)	0.397	−0.129 (0.081)	0.939	−0.080 (0.124)	0.519	0.045 (0.037)	0.224
college or university	0.292 (0.043)	0.000	0.274 (0.043)	0.000	0.170 (0.084)	0.930	0.236 (0.127)	0.063	0.333 (0.043)	0.000
Marital status (base = never married)
married	0.314 (0.039)	0.000	0.318 (0.039)	0.000	0.378 (0.049)	0.000	0.504 (0.073)	0.000	0.306 (0.039)	0.000
widowed/divorced	0.144 (0.054)	0.008	0.153 (0.054)	0.004	0.264 (0.084)	0.002	0.402 (0.127)	0.002	0.118 (0.054)	0.029
separated	−0.146 (0.049)	0.003	−0.140 (0.049)	0.004	−0.048 (0.068)	0.480	0.209 (0.105)	0.047	−0.167 (0.049)	0.001
Labor force (base = no)
labor force	−0.126 (0.027)	0.000	−0.122 (0.027)	0.000	−0.203 (0.042)	0.000	−0.160 (0.058)	0.006	−0.131 (0.027)	0.000
Household income
household income	0.016 (0.007)	0.022	0.015 (0.007)	0.032	0.013 (0.009)	0.002	0.006 (0.012)	0.617	0.024 (0.007)	0.001
Disability (base = yes)
none	0.083 (0.040)	0.038	0.083 (0.040)	0.038	0.063 (0.076)	0.407	0.142 (0.112)	0.205	0.090 (0.040)	0.024
Frequency of consumption
all	0.017 (0.002)	0.000
museums			0.025 (0.013)	0.049
art galleries			0.047 (0.017)	0.004
music			0.044 (0.014)	0.002
performing arts (play/musical/dance)			0.043 (0.015)	0.006
movies			0.010 (0.003)	0.001
Diversity of consumption
HHI					0.339 (0.055)	0.000
HHI (excluding movies)							0.215 (0.074)	0.004
Inclusiveness on consumption
consumption conditions									0.475 (0.015)	0.000
Area	YES		YES		YES		YES		YES
Year	YES		YES		YES		YES		YES
cut1	1.554 (0.112)	-	1.560 (0.113)	-	0.903 (0.185)	-	1.244 (0.267)	-	2.587 (0.117)	-
cut2	3.597 (0.112)	-	3.602 (0.112)	-	3.000 (0.182)	-	3.395 (0.261)	-	4.671 (0.117)	-
cut3	6.486 (0.116)	-	6.492 (0.117)	-	5.856 (0.186)	-	6.086 (0.266)	-	7.621 (0.122)	-
cut4	8.658 (0.120)	-	8.669 (0.121)	-	8.116 (0.191)	-	8.379 (0.273)	-	9.835 (0.127)	-
Obs.	37,060		37,060		18,944		9461		37,060
Log pseudo likelihood	−41,113.693		−41,112.726		−20,844.612		−10,507.801		−40,540.207
Pseudo R2	0.1690		0.1695		0.1633		0.1608		0.1810
VIF	1.78		1.74		1.86		1.86		1.77

Note: The standard errors shown are robust and consider heteroskedasticity in parentheses.

, we find that the coefficients on frequency are positive and statistically significant, indicating that the cultural activities in Korea have a positive relationship with an individuals’ subjective well-being: log pseudo likelihood = −41,113.7, pseudo $R^2$ = 0.1690, and mean VIF = 1.78 in Model 1; and log pseudo likelihood = −41,112.7, pseudo $R^2$ = 0.1695, and mean VIF = 1.74 in Model 2. Specifically, Model 2 presents the effects of each type of cultural activity on subjective well-being. The coefficients on the frequency variables are, in order, art galleries (0.047), music (0.044), performing arts (0.043), museums (0.025), and movies (0.010). Models 3–5 present the results of diversity of consumption on cultural activities: log pseudo likelihood = −20,844.6, pseudo ${\mathrm{R}}^2$ = 0.1633, and mean VIF = 1.86 in Model 3a; and log pseudo likelihood = −10,507.8, pseudo ${\mathrm{R}}^2$ = 0.1608, and mean VIF = 1.86 in Model 3b. As shown in Model 3a, subjective well-being increases with the diversity of consumption for cultural activities. Various types of cultural consumption increase the subjective well-being, with the estimated coefficient being 0.339. However, concerns about bias arise regarding the diversity index in Model 3a due to the weight of movies. Therefore, in Model 3b, the diversity index excluding movie consumption is considered. Since movie consumption is the highest than, the robustness of the diversity index excluding movie consumption is examined. As expected, the proportion of movies is distorting the diversity index. Fortunately, it does not affect the direction of the estimation coefficient, but only its size. These results suggest that a combination of the various genres should be consumed. Finally, Model 4 presents the results of inclusion in cultural activities: log pseudo likelihood = −40,540.2, pseudo $R^2$ = 0.1810, and mean VIF = 1.77. The coefficient on the inclusiveness on consumption is 0.475. In other words, as the inclusion of consumption in cultural activities increases, subjective well-being increases as well; therefore, any restrictions on the participation to cultural activities should be removed.

We extend the analysis using the derived marginal effects. In

Table 3. Marginal effect estimates.

	Frequency
	All		Museums		Art Galleries		Music		Performing Arts		Movies
	dy/dx	p-Value	dy/dx	p-Value	dy/dx	p-Value	dy/dx	p-Value	dy/dx	p-Value	dy/dx	p-Value
Very dissatisfied	−0.00073 (0.00010)	0.000	−0.00104 (0.00053)	0.050	−0.00195 (0.00069)	0.005	−0.00181 (0.00059)	0.002	−0.00175 (0.00063)	0.006	−0.00040 (0.00012)	0.001
Dissatisfied	−0.00158 (0.00020)	0.000	−0.00224 (0.00114)	0.049	−0.00421 (0.00148)	0.004	−0.00390 (0.00128)	0.002	−0.00378 (0.00137)	0.006	−0.00087 (0.00026)	0.001
Neutral	−0.00043 (0.00006)	0.000	−0.00061 (0.00031)	0.049	−0.00114 (0.00040)	0.004	−0.00106 (0.00035)	0.003	−0.00103 (0.00037)	0.005	−0.00024 (0.00007)	0.001
Satisfied	0.00168 (0.00022)	0.000	0.00238 (0.00121)	0.049	0.00448 (0.00157)	0.004	0.00415 (0.00136)	0.002	0.00402 (0.00145)	0.006	0.00092 (0.00028)	0.001
Very satisfied	0.00106 (0.00014)	0.000	0.00150 (0.00076)	0.048	0.00283 (0.00099)	0.004	0.00262 (0.00086)	0.002	0.00254 (0.00092)	0.006	0.00058 (0.00018)	0.001
	Diversity								Inclusiveness
	All				Excluded Movie
	dy/dx		p-Value		dy/dx		p-Value		dy/dx		p-Value
Very dissatisfied	−0.0084 (0.0014)		0.000		−0.0041 (0.0015)		0.006		−0.01917 (0.00069)		0.000
Dissatisfied	−0.0259 (0.0042)		0.000		−0.0150 (0.0052)		0.004		−0.04126 (0.00130)		0.000
Neutral	−0.0249 (0.0041)		0.000		−0.0196 (0.0068)		0.004		−0.01117 (0.00054)		0.000
Satisfied	0.0321 (0.0052)		0.000		0.0178 (0.0061)		0.004		0.04372 (0.00137)		0.000
Very satisfied	0.0271 (0.0044)		0.000		0.0209 (0.0073)		0.004		0.02789 (0.00092)		0.000

Note: The standard errors shown are robust and consider heteroskedasticity in parentheses.

, marginal effects indicate how dependent variables change when only specific independent variables change. The results are as follows. First, as the cultural consumption frequency for an entire genre increases, the probability of corresponding to the intervals from “very dissatisfied” to “neutral” decreases, and the probability of corresponding to “satisfied” and “very satisfied” increases. Additionally, similar aspects exist by genre. Specifically, the size of the marginal effect is large for art galleries, music, and performing arts, while the marginal effect of movies is small. Second, as the diversity of consumption increases, the probability of corresponding to the “satisfied” and “very satisfied” intervals increases, while the probability of corresponding to the intervals from “very dissatisfied” to “neutral” decreases. Finally, the inclusiveness on consumption of culture enhances subjective well-being.

In

Table 4. The monetary value of participation in cultural and arts activities.

	Beta on Households Income	Beta on Frequency	Frequency/Household Income	Participation Rate per Year	Value of Year (KRW)
Museums	0.01465	0.02525	1.72423	0.35	25,145
Art galleries		0.04745	3.23985	0.24	32,264
Music		0.04395	3.00100	0.29	36,387
Performing arts		0.04261	2.90977	0.25	30,552
Movies		0.00977	0.66699	3.15	87,542

, we estimate the monetary value of utility for cultural consumption. According to our results, the one-time consumption of culture and arts is worth KRW 42,478 on average. In 2021, the Korean cultural vouchers (The “culture voucher project,” organized by the Korean government, is a national supporting project that aims to enhance the quality of life for the underprivileged by supporting culture, arts, sports, and tourism [8]). amount to KRW 100,000 won. Considering that the average consumption of culture is 4.282, this finding suggests that the cultural voucher amount should be increased.

5. Discussion and Conclusions

In this study, we investigated the benefits of cultural consumption using diverse empirical models. In particular, we focused on consumption diversity and inclusion. First, our results show that participation in culture activities has a positive effect on the subjective well-being, in a similar vein to the findings of previous studies [3,4,6,7,11]. This result from the benefits (e.g., aesthetic value, social value) of cultural activities, which positively influence psychological satisfaction [8].

In addition, we confirmed the importance of the coefficient on the diversity index for cultural consumption through the HHI, not the repertoire variable used in previous studies. According to our results, participation in various cultural activities increases subjective well-being. We also found that the proportion of movies in the diversity index distorts the other coefficients. Achieving smooth consumption requires capital sufficiency and low constraints. In other words, in the process of consuming cultural services, travel distance, accessibility (physical restrictions), ability to pay viewing fees (financial restrictions), securing leisure time (time restrictions), enjoyment for cultural services, among others, are taken into consideration [27,28,29,30]. When each condition is met, the willingness to consume cultural services may lead to consumption [65]. Movies have lower physical, financial, and time constraints than other cultural activities. The low constraints (The reason why movies have lower consumption restrictions than other cultural activities are as follows: (1) Low physical restrictions; in general, movie theaters, which account for the majority of movie consumption, are operated by large companies with sufficient capital; so, most of them are located in places with a large floating population and easy access. (2) The popularity and entertainment inherent in movie content; Korean film consumption is related to commercial films, which concentrate on the needs and interests of the masses, and as such, the barriers to understanding the content are low. Therefore, the level of cognitive effort required to understand the content of the movie and the understanding capacity of the necessary cultural services are not high. (3) Low admission fee; movies are cheaper than classical music concerts and musicals, and the real purchase price is even lower due to various factors, such as discount benefits, thereby dominating price competition) of movies provide high satisfaction to consumers.

This study is the first to show through empirical analysis that cultural diversity and inclusiveness are important in individual life. Secondly, it has the significance of presenting a quantitative basis by quantifying the value of culture and art consumption. Finally, the specific satisfaction was controlled to correct for the bias of the estimated coefficients.

The coefficient on the corrected diversity index reports that the consumption of the other art genres increases the subjective well-being. In Korea, policies to promote cultural enjoyment are being implemented, but cultural consumption tends to be concentrated around some genres due to individual tastes. South Korea has a higher consumption of popular movies, which are more entertaining than pure art centered on artistry, and Japan shows a similar tendency (According to the results of the “Public Opinion Poll on Japanese Culture” by the Agency for Cultural Affairs (Japan) in 2020, the percentage of art galleries (11.4%) and music (5.7%) appreciation events is lower than that of movies (20.9%)). Asian countries such as South Korea and Japan consume less cultural activities, and the consumption is concentrated in specific sectors, such as movies, from the perspective of consumption diversity. However, the developed countries of Europe are not biased toward movies and participate in various cultural activities (Europe has a high cultural activity participation rate (cinema, live performances, cultural sites), and developed countries in Europe such as France (cinema, 59.6%; live performances, 56.3%; cultural sites, 54.7%), Germany (cinema, 48.1%; live performances, 50.4%; cultural sites, 50.0%), and the United Kingdom (cinema, 53.6%; live performances, 52.2%; cultural sites, 56.1%) show an unbiased tendency toward art consumption [66]); hence, South Korea must increase quantitative consumption and support its consumption diversity policy.

The concentration of consumption on these specific genres was also evident for Italy’s cultural voucher “Bonus Cultura.” In 2016, “Bonus Cultura” led to a consumption bias phenomenon, in which 80% of the voucher’s consumption was concentrated on books, which why the importance of various consumption was emphasized. Conversely, the French cultural voucher “Pass Culture” limited consumption by genre (through allocation by genre) by referring to the case of Italy and achieved relatively diverse consumption. Considering our analysis results and the two overseas cases above, the government needs to induce people to consume various genres, where allocation by genre is efficient for projects such as vouchers.

We can also draw policy implications for consumption inclusion. From analyzing the effects of the inclusion index of cultural consumption on subjective well-being, the lower are the restrictions on consuming cultural arts, the higher is the inclusion of cultural consumption. Furthermore, an increase in consumption inclusion increases the subjective well-being. In other words, policies to reduce restrictions on consuming cultural arts are required, in particular policies to promote the consumption of targets with limited cultural consumption due to disabilities and life cycles (e.g., office workers, housewife, and older retirees).

Finally, we estimated the value of utility for cultural consumption. According to our results, the one-time consumption of culture and arts is worth KRW 42,478 on average. Considering the average cultural consumption, we reach a value of KRW 181,891 per year. For 2021, the amount of support from Korean cultural vouchers is KRW 100,000., and the Korean government plans to continue to increase this amount. Our results suggest an appropriate amount as reference for policymakers.

We have confirmed that cultural consumption increases an individual’s subjective well-being. In particular, the more diverse consumption is and the lower are the restrictions on consumption, the higher the subjective well-being becomes. We controlled for omitted variable bias and indices to verify the robustness of the results. However, there is a limitation to our work, in that the data characteristics of the data cannot completely control the determinants of the subjective well-being (e.g., innate personality, civic consciousness, and environment). Therefore, our results do not completely address the endogeneity problem [67,68,69].

The future research of this study was presented from following perspectives. First, improvements to the measurement of variables. Because this study used national statistical data on a yearly basis, it is difficult to confirm the instantaneous utility of consuming culture and art. Therefore, future research should measure the state immediately before and after consuming cultural arts by genre. Second, the question of social survey needs improvement. In this study, the cultural inclusion question is a single question. However, realistically the level of cultural inclusiveness varies by specific areas such as language, ethnicity, and disability. Therefore, conducting empirical analyzes on improved cultural inclusiveness questions may lead to more specific and useful results.