Discussion Papers no. 201

How did the Nordic countries fare during their crises?

Unemployment shocks and income distribution

We analyse how inequality of disposable income evolved in Denmark, Finland, Norway and Sweden during the late 1980s and early 1990s when unemployment rose dramatically in all four countries. We find that a standard measure of inequality - the Gini coefficient - was surprisingly stable in all countries over this period. By decomposing the Gini coefficient into a number of income components, we can test hypotheses about the reasons for the stable income distribution. Our most straightforward hypothesis, that rising unemployment benefits have counteracted the impact of more unequally distributed earnings, gets only limited support. More complex mechanisms seems to have been at work in the Nordic countries.

Om publikasjonen

Tittel

Unemployment shocks and income distribution. How did the Nordic countries fare during their crises?

Ansvarlig

Rolf Aaberge

Serie og -nummer

Discussion Papers no. 201

Utgiver

Statistics Norway, Research Department

Emne

Discussion Papers

Antall sider

41

Målform

Engelsk

Om Discussion Papers

Discussion papers comprise research papers intended for international journals and books. A preprint of a Discussion Paper may be longer and more elaborate than a standard journal article as it may include intermediate calculations, background material etc.

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