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Poverty in Sweden 1991-2007. Change, dynamics, and intergenerational transmission of poverty during economic recession and growth

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  • Jonsson, Jan O.

    ()
    (Swedish Institute for Social Research, Stockholm University)

  • Mood, Carina

    ()
    (Swedish Institute for Social Research, Stockholm University)

  • Bihagen, Erik

    ()
    (Swedish Institute for Social Research, Stockholm University)

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    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.

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    Bibliographic Info

    Paper provided by Swedish Institute for Social Research in its series Working Paper Series with number 10/2011.

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    Length: 51 pages
    Date of creation: 29 Aug 2011
    Date of revision:
    Handle: RePEc:hhs:sofiwp:2011_010

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    1. Björklund, Anders & Lindahl, Mikael & Plug, Erik, 2005. "The Origins of Intergenerational Associations: Lessons from Swedish Adoption Data," IZA Discussion Papers 1739, Institute for the Study of Labor (IZA).
    2. Björklund, Anders & Jäntti, Markus & Lindquist, Matthew J., 2007. "Family Background and Income during the Rise of the Welfare State: Brother Correlations in Income for Swedish Men Born 1932-1968," IZA Discussion Papers 3000, Institute for the Study of Labor (IZA).
    3. Jäntti, Markus & Bratsberg, Bernt & Røed, Knut & Raaum, Oddbjørn & Naylor, Robin & Österbacka, Eva & Bjørklund, Anders & Eriksson, Tor, 2005. "American exceptionalism in a new light: a comparison of intergenerational earnings mobility in the Nordic countries, the United Kingdom and the United States," Memorandum 34/2005, Oslo University, Department of Economics.
    4. Atkinson, Tony & Cantillon, Bea & Marlier, Eric & Nolan, Brian, 2002. "Social Indicators: The EU and Social Inclusion," OUP Catalogue, Oxford University Press, number 9780199253494, September.
    5. Corak,Miles (ed.), 2004. "Generational Income Mobility in North America and Europe," Cambridge Books, Cambridge University Press, number 9780521827607, April.
    6. Sandra E Black & Paul J Devereux, 2010. "Recent Developments in Intergenerational Mobility," Working Papers 201010, School Of Economics, University College Dublin.
    7. Miles Corak & Andrew Heisz, 1999. "The Intergenerational Earnings and Income Mobility of Canadian Men: Evidence from Longitudinal Income Tax Data," Journal of Human Resources, University of Wisconsin Press, vol. 34(3), pages 504-533.
    8. Bernt Bratsberg & Knut Røed & Oddbjørn Raaum & Robin Naylor & Markus Ja�ntti & Tor Eriksson & Eva O�sterbacka, 2007. "Nonlinearities in Intergenerational Earnings Mobility: Consequences for Cross-Country Comparisons," Economic Journal, Royal Economic Society, vol. 117(519), pages C72-C92, 03.
    9. Duncan, Greg J, et al, 1993. "Poverty Dynamics in Eight Countries," Journal of Population Economics, Springer, vol. 6(3), pages 215-34.
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