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Poverty trends during two recessions and two recoveries: lessons from Sweden 1991–2013

Author

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  • Jan Jonsson
  • Carina Mood
  • Erik Bihagen

Abstract

We study cross-sectional and long-term poverty in Sweden over a period spanning two recessions, and discuss changes in the policy context. We find large increases in absolute poverty and deprivation during the 1990’s recession but much smaller increases in 2008-2010. While increases in non-employment contributed to increasing poverty in the 1990’s, the temporary poverty increase 2008-2010 was entirely due to growing poverty among non-employed. Relative poverty has increased with little variation across business cycles. Outflow from poverty and long-term poverty respond quickly to macro-economic recovery, but around one percent of the working-aged are quite resistant to such improvements. JEL codes: I30, I32, E32 Copyright Jonsson et al. 2016

Suggested Citation

  • Jan Jonsson & Carina Mood & Erik Bihagen, 2016. "Poverty trends during two recessions and two recoveries: lessons from Sweden 1991–2013," IZA Journal of European Labor Studies, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 5(1), pages 1-20, December.
    • Handle: RePEc:spr:izaels:v:5:y:2016:i:1:p:1-20:10.1186/s40174-016-0051-8
    DOI: 10.1186/s40174-016-0051-8
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    Citations

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    Cited by:

    1. Arkadiusz Piwowar & Maciej Dzikuc, 2020. "Poverty and Social Exclusion: Is this a Problem in Rural Areas in the Visegrad Group Countries?," European Research Studies Journal, European Research Studies Journal, vol. 0(2), pages 45-54.
    2. Simone Scarpa & Carl-Ulrik Schierup, 2018. "Who Undermines the Welfare State? Austerity-Dogmatism and the U-Turn in Swedish Asylum Policy," Social Inclusion, Cogitatio Press, vol. 6(1), pages 199-207.
    3. Karman Agnieszka & Miszczuk Andrzej & Bronisz Urszula, 2023. "Discovering the factors driving regional competitiveness in the face of climate change," Miscellanea Geographica. Regional Studies on Development, Sciendo, vol. 27(2), pages 75-91, April.
    4. Gustafsson, Björn Anders & Mac Innes, Hanna & Österberg, Torun, 2017. "Older People in Sweden Without Means: On the Importance of Age at Immigration for Being 'Twice Poor'," IZA Discussion Papers 11144, Institute of Labor Economics (IZA).

    More about this item

    Keywords

    Poverty; Recessions; Income inequality; Sweden; Long-term poverty; Material deprivation;
    All these keywords.

    JEL classification:

    • I30 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles

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