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Children who stay in hometown 'inherit' parents' economic status, BOK finds

Published: 11 Feb. 2026, 18:12 Updated: 11 Feb. 2026, 19:24

Apartments are seen from Mount Namsan in central Seoul on Feb. 5. [NEWS1]

Children born to low-income parents outside the Seoul metropolitan area are more likely to remain in the same economic bracket as their parents if they stay in their hometowns, according to a joint report released on Wednesday.

The Bank of Korea (BOK) and the Organisation for Economic Cooperation and Development jointly compiled the report detailing the relationship between regional movement and the inheritance of economic status.

The report measured how strongly parents’ economic standing influences that of their children by comparing their income and wealth rankings, with a higher index score meaning children are more likely to end up in a similar economic position as their parents.

Among people born in the 1970s, the apparent correlation between income levels measured 0.11, but it rose to 0.32 for those born in the 1980s. The same pattern appeared in wealth: The rate increased from 0.28 for the 1970s group to 0.42 for the 1980s group.

When individuals relocate to a region different from their parents, changes in the educational environment and employment opportunities often accompany the move, which can influence economic outcomes, according to the report.

Moving to another region tends to improve economic prospects and reduce the likelihood that children remain in the same economic position as their parents.

However, the economic benefits of moving differed depending on where people were born and where they moved.

“Individuals born in the Seoul metropolitan area show meaningful upward mobility, particularly among those from low-income families, when they move within the capital region,” a BOK official said. “In contrast, those born outside the capital region see significant improvement when they relocate to the Seoul metropolitan area, but the effect diminishes when they move within their general regional area."

To address the growing link between birthplace, place of residence and economic status, the report suggested policies that expand opportunities for low-income students in noncapital regions. Suggested measures include college admissions policies that allocate seats by region.

“Focusing regional growth around key cities could provide a fundamental solution by encouraging movement within noncapital areas and reducing the tendency for economic status to pass from parents to children,” the BOK official said. “Current discussions about merging administrative districts and reforming metropolitan governance should also move forward in ways that strengthen the role of these cities."

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY PARK JONG-SUH [[email protected]]