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THE WELFARE STATE AND POVERTY IN FINLAND AND SWEDEN FROM THE MID‐1960s TO THE MID‐1980s

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  • Björn Gustafsson
  • Hannu Uusitalo

Abstract

Using poverty lines representing the fixed basket of goods and services, the development over time of poverty in Finland and Sweden are compared. In both countries, poverty decreased rapidly between the mid‐1960s and the mid‐1970s, after which changes have been less dramatic. During the first part of the 1980s poverty continued to decrease in Finland, but increased in Sweden. Comparisons for age‐groups showed large reductions in poverty rates among the aged in both countries. Poverty has shifted from the permanent old age poverty towards a more temporary poverty in young adulthood. International comparisons show that in the early 1980s both Finland and Sweden had poverty rates below the average of the affluent Western nations. Furthermore, these comparisons suggest that cross‐national variations in poverty rates are partly explained by the size of the welfare state. Also, time series analysis shows that income transfers have taken an increasing number of people out of poverty in both countries.

Suggested Citation

  • Björn Gustafsson & Hannu Uusitalo, 1990. "THE WELFARE STATE AND POVERTY IN FINLAND AND SWEDEN FROM THE MID‐1960s TO THE MID‐1980s," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 36(3), pages 249-266, September.
    • Handle: RePEc:bla:revinw:v:36:y:1990:i:3:p:249-266
    DOI: 10.1111/j.1475-4991.1990.tb00303.x
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    Cited by:

    1. Donaldson, John A., 2008. "Growth is Good for Whom, When, How? Economic Growth and Poverty Reduction in Exceptional Cases," World Development, Elsevier, vol. 36(11), pages 2127-2143, November.
    2. Bea Cantillon, 2012. "GINI DP 52: Virtuous Cycles or Vicious Circles? The Need for an EU Agenda on Protection, Social Distribution and Investment," GINI Discussion Papers 52, AIAS, Amsterdam Institute for Advanced Labour Studies.
    3. Christina Behrendt, 2000. "Holes in the Safety Net? Social Security and the Alleviation of Poverty in a Comparative Perspective," LIS Working papers 259, LIS Cross-National Data Center in Luxembourg.
    4. Olli Kangas & Veli-Matti Ritakallio, 2004. "Relative to What? Cross-national Picture of European Poverty Measured by Regional, National and European Standards," LIS Working papers 384, LIS Cross-National Data Center in Luxembourg.
    5. Mikael Nygård & Camilla Härtull & Annika Wentjärvi & Susanne Jungerstam, 2017. "Poverty and Old Age in Scandinavia: A Problem of Gendered Injustice? Evidence from the 2010 GERDA Survey in Finland and Sweden," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 132(2), pages 681-698, June.
    6. Jorgen Hansen & Roger Wahlberg, 2009. "Poverty and its persistence: a comparison of natives and immigrants in Sweden," Review of Economics of the Household, Springer, vol. 7(2), pages 105-132, June.
    7. Sheldon Danziger & Markus J ntti, 1999. "Income Poverty in Advanced Countries," LIS Working papers 193, LIS Cross-National Data Center in Luxembourg.

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