9204_not-searchable
/en/inntekt-og-forbruk/statistikker/inntind/aar
9204
High income growth - but not for everyone
statistikk
2004-10-06T10:00:00.000Z
Income and consumption;Social conditions, welfare and crime;Immigration and immigrants
en
inntind, Households' income, particular groups, income distribution, household income, low-income groups (for example single parents, long-term sick, supplementary benefit recipients), poor, median income, low-income limits, EU scale, OECD scaleIncome and wealth, Living conditions , Income and consumption, Income and consumption, Social conditions, welfare and crime, Immigration and immigrants
false

Households' income, particular groups, 1996-2002

Content

Published:

This is an archived release.

Go to latest release

High income growth - but not for everyone

Most Norwegian households have experienced a substantial rise in income over the last years, but not everyone has taken part in this growth. Households that traditionally have a marginal attachment to the labour force, e.g. social assistance recipients, immigrants and people with longstanding illness, have had a weaker growth in their income, compared to the average household. These groups are also over-represented in the low-income group.

Statistics Norway's income distribution survey shows that Norwegian households had a 25 per cent rise in after-tax income per consumption unit from 1996 to 2002 (fixed prices). People with longstanding illness and social assistance recipients experienced the lowest income growth with 13 and 14 per cent, respectively. Other groups that did not keep up with the general income growth were single parents, single people under 35 and immigrants from non-western countries.

Small increase in the low-income group

A worsening labour market is probably the main reason why the low-income group increased somewhat from 2001 to 2002. A small increase is found both when the EU and the OECD method for measuring low-income are used.

The groups that have the lowest growth in income are also over-represented among people at risk of poverty. Irrespective of the method used for measuring low income, social assistance recipients, people with longstanding illness, young singles and single parents are highly over-represented in the low-income group. This is also the case for the long-term unemployed and non-western immigrants. In particular, social assistance recipients seem to have had an unfavourable development since last year. According to the OECD and the EU methods for measuring low income, 25 and 44 per cent of social assistance recipients are found in the low-income group.

More social assistance recipients on persistent low income

The share of people with persistent low income is quite stable. Persistent low income is defined as low income over a period of at least three years. When single students are excluded, the proportion with persistent low income was 2.1 per cent according to the OECD definition and 8.1 per cent according to the EU definition. These figures have remained relatively stable over the last years. However, some groups are clearly over-represented among those with persistent low-income. As for annual low-income, social assistance recipients are also over-represented among those with low income over a long period, and the share seems to be rising. In the period 1997-1999, about 3 out of 10 social assistance recipients had persistent low income according to the EU definition. In the period 2000-2002, the share had risen to 4 out of 10.

There is also a high proportion of non-western immigrants among those with persistent low-income, and the share is rising. In the period 1999-2001, 23 per cent of non-western immigrants had persistent low income, rising to 31 per cent in the period 2000-2002 (EU definition). The main reason for this development is the worsening labour market, where non-western immigrants are particularly vulnerable. According to labour market statistics, unemployment among non-western immigrants increased considerably during 2002.

Norway compared to the rest of Europe

There are certain conceptual and definitional problems associated with comparing low income in different countries. One such problem is the economic value of public services, for instance services targeted at children and the elderly. These services may have a substantial impact on the well being of the population, but the size of such public services vary considerably between European countries. The value of public services is not included in the household income concept. Data from Eurostat nevertheless indicate that low income is less prevalent in Norway than in most other European countries. In 2001, Sweden had the lowest proportion of people on annual low income, with 9 per cent of the population belonging to the low-income group, closely followed by Norway and Denmark with 10 per cent. In the opposite end of the ranking we find Ireland, Italy, Spain, Greece and Portugal, where roughly one out of five had an income below the low-income threshold.

The data

The data are taken from the annual income distribution survey for households. These are sample surveys with a sample size ranging from roughly 10 000 households to 28 000 households for the years 1996-2002. One part of the survey consists of a panel survey, i.e. a survey where the same individuals are interviewed several times over several years. The indicators are updated every year.

Tables: