OECD Analysis: Admission to a Seoul University No Longer a Guaranteed Ticket Out of Poverty

A long-term tracking analysis of 1,000 young adults by the OECD and the Bank of Korea revealed that while those who migrated from regional areas to the metropolitan area earned more than their peers who did not, they actually found it harder than in the past to ascend to a higher income bracket than their parents. The analysis showed that the upward mobility effect of relocating to the metropolitan area is steadily weakening, with the decline in upward mobility particularly stark among the relatively younger cohort born between 1981 and 1990.

The ability of young adults from regional areas to relocate to the metropolitan area and access universities and jobs in Seoul was found to be critically dependent on their parents' income and financial status. The percentage of homes affordable to median-income households in Seoul plummeted from 32% in 2012 to just 7% last year, with this surge in housing prices acting as a major barrier to migration.

The OECD recommended policies to decentralize opportunities to regional areas, including improving local job and educational conditions, as well as expanding transportation and digital infrastructure.