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Rich and poor in the Nordic welfare statesJohan Fritzell, johan.fritzell@chess.su.seProfessor of Sociology, CHESS, Stockho...
Rich and poor in the Nordic Welfare States:               Table of content• Background: Two key outcomes of the Nordic  mo...
Rich and poor in the Nordic Welfare States:           Table of content (2)• „New‟ and „old‟ social risks   – Nordic countr...
Johan Fritzell, Olof Bäckman and Veli-Matti Ritakallio:“Income inequality and poverty: do the Nordic countriesstill consti...
Data + income and poverty measurements• Data sources:  – National data sources,  – Luxembourg Income Study,  – EU-SILC• In...
Overall income inequality and poverty                   trends• I. Income inequality trends  – Yearly changes ~mid80s to l...
Changes of income inequality (Gini) in the Nordic countries                                      from 1985 to 2008. The Gi...
At-risk of poverty 1995 and 2005.          Data source: The Luxembourg Income StudyPercent3025201510 5 0                  ...
Poverty rates and profiles in old and     new social risk categories       EU-SILC data (2007)      New risk groups: young...
At-risk-of-poverty (%) in 2007, Old risks: Children,large families, single mothers, old age. Source: EU-SILC45403530252015...
At-risk-of-poverty (%) in 2007, New risks: youngsingle adults and migrants (born inside-outside EU)                       ...
At-risk-of-poverty migrants born outside EU relative to country           average(=1) Source: Fritzell, Bäckman & Ritakall...
For whosoever hath, to him shall be given:     Trends among high income earners
Top 1% income share in Sweden between 1991                and 2008. Equivalent disposable income109876543210     1991 1992...
Top 1% income share in Finland between 1980 and 2004.     Source: Jäntti, Riihela, Sullström, and Tuomala
Increases at the top of the tops: The IcelandicexampleSource: Stefan Olafsson and Arnaldur Solvi Kristjansson, 2010
For whosoever hath, to him shall be given: Is                it important?
For whosoever hath, to him shall be given: Is it                   important?• The empirical facts  – Similarity in trends...
For whosoever hath, to him shall be given: Is it                   important?• From an Anglo-saxon perspective:• “I believ...
Conclusions• Many similarities within the Nordic countries in trends and many  subgroup-analyses• Increasing income inequa...
• Kiitos - Tack för er  uppmärksamhet!• Johan Fritzell  johan.fritzell@chess.su.se
Johan Fritzell: Rich and poor in the Nordic welfare states
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Johan Fritzell: Rich and poor in the Nordic welfare states

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Inequality and the Nordic Welfare Model Seminar 7th November 2011, THL
Rich and poor in the Nordic welfare states
Johan Fritzell, Professor of Sociology,
CHESS, Stockholm University/Karolinska Institutet Research director,
Institute for Futures Studies, Stockholm

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Transcript of "Johan Fritzell: Rich and poor in the Nordic welfare states"

  1. 1. Rich and poor in the Nordic welfare statesJohan Fritzell, johan.fritzell@chess.su.seProfessor of Sociology, CHESS, Stockholm University/Karolinska InstitutetResearch director, Institute for Futures Studies, StockholmTo be presented at “Inequality and the Nordic welfare model” seminar,THL-auditorium, Helsinki 2011-11-07
  2. 2. Rich and poor in the Nordic Welfare States: Table of content• Background: Two key outcomes of the Nordic model – Low income inequality – Low poverty rates• Are the Nordic countries still a family of their own in these respects? – More or less similar – More or less distinct from other
  3. 3. Rich and poor in the Nordic Welfare States: Table of content (2)• „New‟ and „old‟ social risks – Nordic countries especially successful vs. old risks – Also new social risk categories?• Top income trends – For whosoever hath, to him shall be given – Is that important?
  4. 4. Johan Fritzell, Olof Bäckman and Veli-Matti Ritakallio:“Income inequality and poverty: do the Nordic countriesstill constitute a family of their own?”; in Changing SocialEquality, Policy PressJohan Fritzell, ”Fattig och rik i Sverige”; in Utanförskap,Dialogos förlag & Institutet för Framtidsstudier+ Of course a lot of other sources
  5. 5. Data + income and poverty measurements• Data sources: – National data sources, – Luxembourg Income Study, – EU-SILC• Income: – Equivalised disposable income (mostly)• Poverty: – Income-based – 60% per cent threshold
  6. 6. Overall income inequality and poverty trends• I. Income inequality trends – Yearly changes ~mid80s to late00 within Nordic countries (incl. Iceland)• II. Poverty trends and comparisons with Non- Nordic countries – ~mid90s to ~mid00s
  7. 7. Changes of income inequality (Gini) in the Nordic countries from 1985 to 2008. The Gini has been set to 100 in 1995 for each country. Source: Fritzell, Bäckman, Ritakallio, 2011; Data National income distribution surveys 175 150 125 Denmark Iceland Finland SwedenGINI 1995 = 100 Finland 100 Denmark Sweden Norway Iceland Norway 75 50 25 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
  8. 8. At-risk of poverty 1995 and 2005. Data source: The Luxembourg Income StudyPercent3025201510 5 0 1995 2005
  9. 9. Poverty rates and profiles in old and new social risk categories EU-SILC data (2007) New risk groups: young adults and immigrants
  10. 10. At-risk-of-poverty (%) in 2007, Old risks: Children,large families, single mothers, old age. Source: EU-SILC4540353025201510 5 0 DK FI IS NO SE DE IT NL UK EUR 17 Children Large families Single mothers Old age
  11. 11. At-risk-of-poverty (%) in 2007, New risks: youngsingle adults and migrants (born inside-outside EU) Source: EU-SILC 60 50 40 30 20 10 0 DK FI IS NO SE DE IT NL UK EUR 17 Young single adults Immigrants - inside EU Immigrants - outside EU
  12. 12. At-risk-of-poverty migrants born outside EU relative to country average(=1) Source: Fritzell, Bäckman & Ritakallio 2011; Data: EU-SILC 2007 32,5 21,5 1 d e rg l nd n d e d n n en e k ke ga rg ig ar ik an ie an lie ie an bu rri gi lla kr n rtu er an nm No Ita nl Irl l an l ek te m HoBe an Sv Sp Fi Po Da Ös xe Gr rit Fr b Lu or St0,5
  13. 13. For whosoever hath, to him shall be given: Trends among high income earners
  14. 14. Top 1% income share in Sweden between 1991 and 2008. Equivalent disposable income109876543210 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
  15. 15. Top 1% income share in Finland between 1980 and 2004. Source: Jäntti, Riihela, Sullström, and Tuomala
  16. 16. Increases at the top of the tops: The IcelandicexampleSource: Stefan Olafsson and Arnaldur Solvi Kristjansson, 2010
  17. 17. For whosoever hath, to him shall be given: Is it important?
  18. 18. For whosoever hath, to him shall be given: Is it important?• The empirical facts – Similarity in trends but of course, Nordic countries are much more equal but not immune to the trends• Legitimation – The possibilities for universalism – The possibilities for high quality public services – The possibilities for national politics• Can income inequalities at the top spread to injustices in other spheres?
  19. 19. For whosoever hath, to him shall be given: Is it important?• From an Anglo-saxon perspective:• “I believe that the recent concentration of wealth at the very top of the income distribution in the United States (and other English speaking countries) is a serious threat to well-being, through its possible long-term effects on health, education and democracy”• Angus Deaton (2011)
  20. 20. Conclusions• Many similarities within the Nordic countries in trends and many subgroup-analyses• Increasing income inequalities and poverty rates in the Nordic countries also lately. The Nordic countries less different thereby• The Nordic countries not immune against the increases of top incomes• The Nordic countries seem to have difficulties (less ambitious?) in fighting poverty among new social risk groups
  21. 21. • Kiitos - Tack för er uppmärksamhet!• Johan Fritzell johan.fritzell@chess.su.se
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