In Korea, there have been a number of studies on estimation of the minimum cost of living during the past decade. The previous studies, using Engel, Rowntree, and Leyden estimation method, have shown widely different results. Therefore, anyone who nee...
In Korea, there have been a number of studies on estimation of the minimum cost of living during the past decade. The previous studies, using Engel, Rowntree, and Leyden estimation method, have shown widely different results. Therefore, anyone who needs an estimate of the minimum cost of living as a reliable reference is perplexed when they are supposed to choose one among those much different estimates. The main purposes of this study are to analyze the previous studies, to estimate a new one by using the Leyden method, and to compare the new results with previous ones. Especially, this study is to reassert the theoretical advantage of the Leyden method which is based on the relative poverty concept and to resolve the problems with which the previous studies using the Leyden method are faced. This study estimates the minimum cost of living for three different areas, Seoul area. non-Seoul urban area, and farm area. The new estimates fall within the range of the previous estimates and the estimated cost of minimum living of urban area are very close to the level of standard cost of living estimated by the Ministry of the Labor. From this study, we can derive the two very important conclusions; firstly, two estimates of the cost of minimum living which are based on two different overall living standards of the society cannot be directly comparable and, secondly, the estimation method of cost of minimum living based on the relative poverty concept provides more reliable estimates than that basesd on the absolute poverty concept.