IDEAS home Printed from https://ideas.repec.org/p/iza/izadps/dp3248.html
   My bibliography  Save this paper

Sweden's Pensioners: How They Have Fared in the Roller Coaster Ride through the Past Decade and a Half of Deep Recession and Economic Exuberance

Author

Listed:
  • Gustafsson, Björn Anders

    () (University of Gothenburg)

  • Johansson, Mats

    () (Institute for Futures Studies, Stockholm)

  • Palmer, Edward

    () (Uppsala University)

Abstract

This study analyses the development of the economic well-being of the elderly in Sweden since 1990 – a period characterized by increased influence from the financial market and extreme economic events – using data from the Household Income Survey. The elderly were not isolated as pensions were cut, full indexation abandoned and taxes increased during Sweden’s deep recession in the 1990s. Instead, relatively, pensioners fared better than the working age population. On the other hand, poverty increased in absolute terms. In contrast in the following years of rapid economic growth, the growth in the income of the pensioners fell behind that of workers and relative poverty increased. The analysis shows that the limited resources of many of the elderly put them close to a socially interesting poverty line. Income inequality among the elderly has increased with an increase in the importance of capital income for the better off among the elderly, with a clear tendency towards delineation between the better and worse off, which we conclude has implications for public expenditures for the elderly. Overall, poverty among the elderly in Sweden remains low in an international perspective and our analysis leads us to conclude that the Swedish welfare state has maintained its resilience.

Suggested Citation

  • Gustafsson, Björn Anders & Johansson, Mats & Palmer, Edward, 2007. "Sweden's Pensioners: How They Have Fared in the Roller Coaster Ride through the Past Decade and a Half of Deep Recession and Economic Exuberance," IZA Discussion Papers 3248, Institute for the Study of Labor (IZA).
  • Handle: RePEc:iza:izadps:dp3248
    as

    Download full text from publisher

    File URL: http://ftp.iza.org/dp3248.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. Graham Pyatt & Chau-nan Chen & John Fei, 1980. "The Distribution of Income by Factor Components," The Quarterly Journal of Economics, Oxford University Press, vol. 95(3), pages 451-473.
    2. Michael F. Förster, 2000. "Trends and Driving Factors in Income Distribution and Poverty in the OECD Area," OECD Labour Market and Social Policy Occasional Papers 42, OECD Publishing.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    income inequality; poverty; income; pensions; Sweden;

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:iza:izadps:dp3248. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mark Fallak). General contact details of provider: http://www.iza.org .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.