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Fewer elderly at risk of poverty
The number of elderly persons with a persistent low income dropped by almost 9 000 from the three-year period 2007-2009 to 2008-2010. At the same time, more young people face a risk of poverty.
Based on the EU's definition of persistent low income, 7.9 per cent of the population had a persistent low income (see text box below) in the period 2008 to 2010, down from 8.1 per cent in the previous three-year period. Since 2004, the proportion with a persistent low income in the population has been stable at around 8 per cent.
Elderly people (age 67 and older) constitute a falling proportion of the persistent low-income group, down from 16.9 per cent in 2004-2006 to 12.8 per cent in 2008-2010. This development can be explained by a substantial increase in the minimum state pension, more elderly participating in the labour force and new cohorts of old-age pensioners receiving earnings-related pensions to a larger extent than older cohorts of pensioners. In addition, an increasing proportion of old-age pensioners now live in couples, who in general are financially far better off than single pensioners.
More young people with low income
The proportion of young people (age 18-34) with a persistent low income has increased in recent years, from 9.6 per cent in 2004-2006 to 11.1 per cent in 2008-2010. Almost 100 000 persons in this age group face a risk of poverty. A weaker after-tax income growth than in the general population, due to falling income from work, explains most of this development. Since 2007, the importance of income from work has fallen, while various National Insurance benefits have become more important for young people.
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 per cent of the median vs. 50 per cent 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. 1996-2010. 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. EU-scale. At constant prices (NOK 2010). 2004=100
- Table 4 Median after tax income per consumption unit. OECD-scale. At constant prices (NOK 2010). 2004=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. 2005-2010. 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. 2005-2010. Per cent
The statistics is published with Income and wealth statistics for households.
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