1) The document analyzes income gaps between immigrant and native children in Sweden over three time periods: 1983-1985, 1995-1997, and 2008-2010. It finds large and widening gaps between immigrant children from Turkey and surrounding regions compared to native Swedish children. 2) The gaps in income levels increased rapidly from 1983/85 to 1995/97, with little change thereafter. However, differences exist between countries of origin, with some like Bosnia seeing decreases in gaps while others like Somalia increased. 3) By 2008-2010, the majority of children from Somalia, Iraq, Lebanon, Syria and Afghanistan had incomes below 60% of the median in Sweden, indicating high rates of relative income poverty.

1. A Widening Immigrant – Native Gap: Child
Income and Poverty in Sweden among
Immigrants from Turkey and the Surrounding
Region
Björn Gustafsson and Torun Österberg
(University of Gothenburg, Sweden)
Presentation: Veli-Matti Törmälehto, Statistics Finland

2. Overview of the paper
Income gaps between immigrant and native children in Sweden
& evolution of gaps over three time periods: 1983-1985,
1995-1997, 2008-2010
Paper with Turkey + 7 nearby countries: Iraq, Iran, Lebanon,
Syria, Romania, Greece, Hungary
Work in progress: a supplementary note with extension to 28
countries: Bosnia, Somalia, Etiopia, Former Yugoslavia,
Finland… + more measures
Main finding: large and widening gaps, but variation between
countries of origin

3. Data and definitions
Register-based household (family?) income data for the whole
population, not a sample!
Equivalent disposable income, individual (child) as the unit of analysis,
three-year average of household incomes
In the note also factor income (pre-tax & –transfer); ”factor income
poverty” based on disposable income threshold
Paper focuses on second generation of immigrant children: children
born in Sweden with two foreign born parents.
Composition of immigrant population has changed significantly: largest
country of origin Finland in 83-85, Iraq & Former Yugoslavia in 08-10

4. Number of children with different foreign background 1983-
0 2500 5000 7500 10000 12500 15000 17500 20000 22500 25000 27500 30000 32500 35000 37500 40000 42500 45000 47500 50000
Etiopia, Eritrea
Vietnam
Former Soviet Union
Hungary
India
Usa, Canada
Romania
Syria
UK
China
Lebanon
Chile
Thailand
Somalia
Turkey
Norway Iceland
Denmark
Germany
Iran
Poland
Former Yogoslavia
Iraq
Finland
1985
Born in Sweden with two parents
born in the foreign country

5. Number of children with different foreign background 1995-1997
0 2500 5000 7500 10000 12500 15000 17500 20000 22500 25000 27500 30000 32500 35000 37500 40000 42500 45000 47500 50000
Colombia
Korea
Greece
Afghanistan
Etiopia, Eritrea
Vietnam
Former Soviet Union
Hungary
India
Usa, Canada
Romania
Syria
UK
China
Lebanon
Chile
Thailand
Somalia
Turkey
Norway Iceland
Denmark
Germany
Bosnia
Iran
Poland
Former Yogoslavia
Iraq
Finland
Born in Sweden with two parents born in
the foreign country

6. Number of children with different foreign background 2008-2010
0 2500 5000 7500 10000 12500 15000 17500 20000 22500 25000 27500 30000 32500 35000 37500 40000 42500 45000 47500 50000
Colombia
Korea
Greece
Afghanistan
Etiopia, Eritrea
Vietnam
Former Soviet Union
Hungary
India
Usa, Canada
Romania
Syria
UK
China
Lebanon
Chile
Thailand
Somalia
Turkey
Norway Iceland
Denmark
Germany
Bosnia
Iran
Poland
Former Yogoslavia
Iraq
Finland
Born in Sweden with two parents
born in the foreign country

7. Methods
Comparisons of 2nd gen. children to native
children:
- (log) income levels, adjusted and unadjusted
- relative income poverty rates (60 %)
In the supplementary note:
- distribution among children (Gini)
- factor income inequality & poverty
- children in the top 10 % (”affluence”)

8. Results
Gaps are large: compared to natives, mean log incomes Iraq -42 %,
Turkey -37 %, Syria -43 %, Somalia -45 %, Bosnia -20 %, Finland -16
% in 08-10
Gaps in income levels increased rapidly from 1983/85 to 1995/97, little
change thereafter
Changes in the composition of the population not the main reason for
the widening income gaps
Adjusted incomes: log child income regressed on Swedish region,
mother and father's education, parents number of years in Sweden,
age of the child & parents, number of children in the family, and
dummies for country of background

9. Adjusted relative difference to children with two swedish born parents
- logartihm of disposable income
IN CH IQ LE IA PO RO GE UK HU FSU EE NI CI DE GR FY SY FI TU VI AF SO BO
0.30
0.20
0.10
0.00
-0.10
-0.20
-0.30
-0.40
-0.50
Year 8385 -0.21 -0.12 -0.12 -0.08 -0.08 -0.08 -0.07 -0.07 -0.07 -0.05 -0.05 -0.04 -0.01 -0.01 0.00 0.02 0.05 0.05 0.05 0.08 0.20
Year 9597 -0.35 -0.34 -0.33 -0.27 -0.27 -0.25 -0.2 -0.21 -0.26 -0.22 -0.37 -0.23 -0.15 -0.21 -0.11 -0.29 -0.22 -0.35 -0.11 -0.3 -0.16 -0.28 -0.22 -0.3
Year 0810 -0.35 -0.35 -0.38 -0.33 -0.27 -0.29 -0.22 -0.18 -0.21 -0.25 -0.37 -0.30 -0.16 -0.28 -0.16 -0.24 -0.21 -0.38 -0.15 -0.31 -0.25 -0.34 -0.31 -0.16

10. Ginis for disposable income among children
Growing child income inequality in most countries between 95-97-> 08-10
(less so in the first period)
0.35 Year 1983-1985
Year 1995-1997
Year 2008-2010
SW FI IQ FY PO IN BO GE DE NI TU SO CI LE CH UK SY RO IA HU FSU VI EE AF GR
0.30
0.25
0.20
0.15
0.10
Year 1983-1985 0.20 0.18 0.19 0.17 0.22 0.20 0.20 0.22 0.21 0.19 0.16 0.22 0.21 0.22 0.18 0.20 0.20 0.18 0.18 0.17 0.17 0.19
Year 1995-1997 0.20 0.18 0.18 0.19 0.22 0.20 0.14 0.23 0.24 0.22 0.21 0.17 0.16 0.19 0.24 0.25 0.22 0.19 0.22 0.21 0.29 0.18 0.17 0.17 0.22
Year 2008-2010 0.24 0.27 0.23 0.21 0.27 0.26 0.19 0.28 0.32 0.32 0.23 0.19 0.21 0.25 0.32 0.30 0.24 0.25 0.25 0.25 0.28 0.23 0.20 0.23 0.24

11. Child income poverty (60 % median)
In the first period, growing relative child income poverty rate in
all countries except natives (14 % to 7 %) and Finns
Year 83-85
Year 95-97
SW FI IQ FY PO IN BO GE DE NI TU SO CI LE CH UK SY RO IA HU FSU VI EE AF GR
0.70
0.60
0.50
0.40
0.30
0.20
0.10
0.00
Year 83-85 14% 13% 25% 12% 15% 26% 11% 14% 16% 22% 13% 38% 33% 21% 19% 15% 18% 9% 9% 19% 15% 0% 18%
Year 95-97 7% 11% 37% 27% 19% 29% 43% 18% 16% 18% 39% 38% 18% 44% 33% 28% 44% 19% 28% 16% 37% 28% 29% 36% 28%

12. Child income poverty (60 % median)
in the second period, increase in all countries except Bosnia (43
% to 19%), UK, Iran, Greece
Year 95-97
Year 08-10
SW FI IQ FY PO IN BO GE DE NI TU SO CI LE CH UK SY RO IA HU FSU VI EE AF GR
0.70
0.60
0.50
0.40
0.30
0.20
0.10
0.00
Year 95-97 7% 11% 37% 27% 19% 29% 43% 18% 16% 18% 39% 38% 18% 44% 33% 28% 44% 19% 28% 16% 37% 28% 29% 36% 28%
Year 08-10 10% 21% 55% 34% 35% 33% 19% 21% 37% 23% 42% 60% 30% 52% 37% 22% 50% 26% 26% 27% 49% 40% 35% 54% 20%

13. Results
In 2008-2010, majority of children with parents
from Somalia, Iraq, Lebanon, Syria and Afganistan
were below 60 % of median poverty line
Differences in evolvement of income gaps and
poverty, e.g. Bosnia (decrease) & Somalia
(increase)
Are there data issues? Inequality vs. poverty,
top/middle/bottom? Need to go deeper into data
country-by-country?

14. Results
Analysis based on factor income vs. disposable income:
- larger gaps to natives than with disposable income (-> more redistribution
of income)
- decrease in factor income gaps from 95-97 to 08-10 in several countries;
not in disposable income gaps
- increase in factor income poverty & Ginis in the first period, decrease in
the second for immigrants; stable or decreasing for natives
 the capacity of transfers and income taxes to lessen income gaps
became smaller from 1995/97 to 2008/10, at least for some categories
 changes in employment, worsening in the first period, improvement in
the 2nd period?

15. Possible explanations
Labour market position of parents
 Reasons for migration (work, refugee)
 Qualifications: education (shorter/non-transferable)
 Employment opportunities, less low-skill jobs
 Language, discrimination?
Less redistributive tax & benefit system (08-10
vs 95-97)

16. Comments & questions
Very promising start, highly relevant topic, based on quite unique data
Why is change in gaps in levels from mid-80s to mid-90s much larger, given that it is not due to
changing composition of population?
Data:
1) Any changes over time in data, coverage, concepts, household definition? Consistency with other sources?
2) not samples, but still small number of observations or large changes between two points of time
3) can the data be used as a panel?
Labour markets, explicitly describing/controlling for employment status of parents, instead via
factor incomes?
Countries of origin: what other groups/clusters than Turkey & surrounding region?
Link to overall development in Sweden: increase in inequality in Sweden fastest
among OECD-countries during the period
 Decomposing overall inequality by income sources/subgroups ( FGT, entropy measures)?