This paper explores differences demonstrated by changes of consumers" clothing expenditure in Korea and the United States since the mid-1990s. Evidence for this study was extrapolated from annual data provided by the Household Expenditure Survey, which was carried out in Korea between 1996 and 2008, and the Consumer Expenditure Survey, which was carried out in the United States during the same time period. The results include: ① The proportion of the clothing expenditure decreased during the subject period in both Korea and the United States; ② The decrease in proportional clothing expenditure was greater in Korea than in the United States; ③ Although the relative prices of clothes decreased greatly during this period in both countries, it was determined that the decrease in clothing prices in the United States was greater when compared to those in Korea; and ④ By using the DID(Difference in difference) model, the author contends that a decrease in clothing purchases contributed to the decrease of prices for clothing in the United States, while in Korea, the decrease in prices for clothing was also impacted by other factors including changes in household expenditures for education and communication.
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