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On Economic Poverty in Finland in the 1990s

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  • Sullström, Risto
  • Riihelä, Marja
  • Tuomala, Matti

Abstract

We have examined recent trends in the poverty in Finland using two data sources, the Household Budget Survey (HBS) and the Income Distribution statistics (IDS). We have drawn on the recent literature on poverty analysis to analyse a range of poverty measures. Scalar measures were complemented by an investigation of stochastic dominance in the analysis of poverty. As regards trends in poverty over time, the long-run perspective available from the HBS indicates that from the early 1970s to the beginning of 1990s, the relative poverty rate has declined. The latter part of the 1990s was clearly different. We find that poverty rose and became more severe over the period 1995-1999 for a very broad class of poverty measures and a wide range of poverty lines. Whilst the total numbers in poverty during the 1990s on these various definitions have risen markedly, the composition of the poor has also changed significantly. There is little doubt that unemployed households are the most vulnerable group of the population.

Suggested Citation

  • Sullström, Risto & Riihelä, Marja & Tuomala, Matti, 2002. "On Economic Poverty in Finland in the 1990s," Discussion Papers 264, VATT Institute for Economic Research.
    • Handle: RePEc:fer:dpaper:264
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    References listed on IDEAS

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    1. Atkinson, A B, 1987. "On the Measurement of Poverty," Econometrica, Econometric Society, vol. 55(4), pages 749-764, July.
    2. Sullström, Risto & Riihelä, Marja & Tuomala, Matti, 2001. "What Lies Behind the Unprecedented Increase in Income Inequality in Finland During the 1990's," Discussion Papers 247, VATT Institute for Economic Research.
    3. Sullström, Risto & Suoniemi, Ilpo, 1995. "The Structure of Household Consumption in Finland, 1966-1990," Research Reports 27, VATT Institute for Economic Research.
    4. Sen, Amartya K, 1976. "Poverty: An Ordinal Approach to Measurement," Econometrica, Econometric Society, vol. 44(2), pages 219-231, March.
    5. Kanbur, Ravi & Keen, Michael & Tuomala, Matti, 1994. "Labor Supply and Targeting in Poverty Alleviation Programs," The World Bank Economic Review, World Bank, vol. 8(2), pages 191-211, May.
    6. Atkinson, A.B., 2000. "A European social agenda: poverty benchmarking and social transfers," EUROMOD Working Papers EM3/00, EUROMOD at the Institute for Social and Economic Research.
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    1. Marja Riihelä & Risto Sullström & Matti Tuomala, 2008. "Economic Poverty in Finland 1971–2004," Finnish Economic Papers, Finnish Economic Association, vol. 21(1), pages 57-77, Spring.

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