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Long-term recipients lag behind
Persons in households headed by a long-term sick or long-term unemployed person had a weaker growth in after-tax income compared to the total population.
Despite a strong increase in median after-tax household income per consumption unit in 2007, several low-income groups had a weaker income growth than the total population. This was particularly true for persons in households headed by persons who are long-term sick, long-term unemployed or in receipt of social assistance. These groups had an increase in real terms of 5.3 per cent, 4.0 per cent and 4.6 per cent respectively. The median income for the total population on the other hand, grew in real terms by 7.6 per cent in 2007.
In contrast, other low-income groups saw a stronger increase in median income than the total population. This was the case for old-age pensioners and recipients of survivors’ pension, as well as households headed by an immigrant.
Stability in the proportion with persistent low income
Based on the EU’s definition of persistent low income, 8.1 per cent of the population (excluding students) had a persistent low income (see text box below) in 2007. This was slightly higher than the year before (7.9 per cent). Based on the OECD method, 3.0 per cent of the population had a persistent low income, up from 2.9 per cent the previous year.
The composition of the low-income group varies depending on the definition in use. When using the EU definition, there are still many old-age pensioners among those with a persistent low income. The number of old-age pensioners with a low income is, however, declining. When using the OECD definition, the majority of those with a persistent low income are households with children, primarily single parents and in particular couples with many children.
Persistent low incomePersons are considered to have a persistent low income when their average income (per consumption unit) over a three-year period falls below the low-income threshold for the same period, i.e. the sum of equivalent income across the three years is less than the sum of the low-income threshold for the same three years. The difference between the EU and the OECD definition is that the EU definition has a higher low-income threshold than the OECD (60% of the median vs. 50% of the median). In addition, the EU definition takes economies of scale within the households into account more than the OECD definition. |
Tables:
- Table 1 Trend in persistent low-income. 1996-2007. Proportion of people with equivalent income below 50 per cent and 60 per cent of average median equivalent income for different three-year periods. Two different equivalent scales
- Table 2 Persons with persistent low-income, by various characteristics. Per cent
- Table 3 Median after tax income per consumption unit for households. EU-scale. At constant prices (NOK 2007). 1996=100
- Table 4 Median after tax income per consumption unit for households. OECD-scale. At constant prices (NOK 2007). 1996=100
- Table 5 Percentage of people in households with annual after-tax income per consumption unit below different distances to the median income. EU-scale. Different groups. 1996, 1999, 2002, 2004-2007. Per cent
- Table 6 Percentage of people in households with annual after-tax income per consumption unit below different distances to the median income. OECD-scale. Different groups. 1996, 1999, 2002,2004-2007. Per cent
The statistics is published with Income and wealth statistics for households.
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