Scandinavian Working Papers in Economics

Working Paper Series,
Stockholm University, Swedish Institute for Social Research

No 10/2011: Poverty in Sweden 1991-2007. Change, dynamics, and intergenerational transmission of poverty during economic recession and growth

Jan O. Jonsson (), Carina Mood () and Erik Bihagen ()
Additional contact information
Jan O. Jonsson: Swedish Institute for Social Research, Stockholm University, Postal: SE-106 91 Stockholm, Sweden
Carina Mood: Swedish Institute for Social Research, Stockholm University, Postal: SE-106 91 Stockholm, Sweden
Erik Bihagen: Swedish Institute for Social Research, Stockholm University, Postal: SE-106 91 Stockholm, Sweden

Abstract: Summary

• Has poverty increased or decreased in Sweden during the last two dec-ades? The answer to this question depends on the definition of poverty. In relative terms poverty has increased due to increasing income differ-ences, but in absolute terms poverty has decreased following increasing real incomes.

• Between 5 and 11 per cent of the population ended up in absolute po-verty between 1991 and 2007. The proportions were much higher for those living alone, for young adults, and for immigrants, particularly those newly arrived.

• Half of the poor leave poverty already the year after entry. The group of poor therefore is composed to a large extent by those who are long-term poor. For those who have once been poor, the risk is high to return to poverty.

• Poverty is strongly associated with economic recession and growth. When the macroeconomic conditions are favourable fewer become poor and the persistence in poverty decreases.

• Long-term poverty, defined in absolute terms, has decreased but become more concentrated to those living alone and to immigrants. Among immigrants, persistence is higher than among those born in Sweden.

• An individual’s incomes and risk of poverty are associated with the household incomes during childhood. Those who grow up poor have excess risks for ending up poor as adults. The probability of ending up as high-income earners is much higher for those who grew up under such advantaged conditions themselves as compared to others.

• Intergenerational income mobility increased between 1995 and 2005, approximately, but whereas inequality of opportunity thus decreased the economic consequences of the income background grew.

Keywords: -

51 pages, August 29, 2011

Full text files

WP11no10.pdf PDF-file 

Download statistics

Questions (including download problems) about the papers in this series should be directed to Daniel Rossetti ()
Report other problems with accessing this service to Sune Karlsson ().

This page generated on 2024-02-05 17:13:41.