O2 Muu julkaisu
Societal change and poverty in Finland 1971-2009 – The roles of distribution of factor income, redistribution and demographic change
Alaotsikko: The roles of distribution of factor income, redistribution and demographic change
Tekijät: Ilmakunnas Ilari
Julkaisuvuosi: 2013
Tiivistelmä
This paper analyzes how societal changes have affected the poverty rates. Focus is on changes in the distribution of factor income, redistribution and socio-demographic structure in Finland in 1971–2009. The effects of these factors are analyzed using a shift-share analysis. Decompositions are made using different structural factors. The data used in the analysis are Statistics Finland´s “Household Budget Survey” for the years 1971 and “Income distribution statistics” for the years 1990 and 2009. The structural factors in the analysis are education, socio-economic status, the number of working adults in the household, age and household size.
In many ways demographic change has been notable in Finland and Western countries during the last decades. In the 2000s Finland´s population is older and more educated, households are smaller and the shares of clerical workers and non-workers are larger than in the 1970s. Mainly the factor income poverty rates are higher in 2009 than they were in 1971 and the poverty rates using disposable income are smaller in 2009 than in 1971. Redistribution has contributed most to the changes of the poverty rate by disposable income. From 1971 to 1990 the poverty rate declined mainly because the income transfer system was more redistributive in 1990 than in 1971. From 1990 to 2009 redistribution increased the poverty rate. Changes in the distribution of factor income and socio-demographic structure have had smaller effects on the poverty rate. However, the distributions of factor income by age and especially by education structure have increased the poverty rate. The decline of the number of working adults in the households has increased and the growth of educational levels has decreased the poverty rate.
This paper analyzes how societal changes have affected the poverty rates. Focus is on changes in the distribution of factor income, redistribution and socio-demographic structure in Finland in 1971–2009. The effects of these factors are analyzed using a shift-share analysis. Decompositions are made using different structural factors. The data used in the analysis are Statistics Finland´s “Household Budget Survey” for the years 1971 and “Income distribution statistics” for the years 1990 and 2009. The structural factors in the analysis are education, socio-economic status, the number of working adults in the household, age and household size.
In many ways demographic change has been notable in Finland and Western countries during the last decades. In the 2000s Finland´s population is older and more educated, households are smaller and the shares of clerical workers and non-workers are larger than in the 1970s. Mainly the factor income poverty rates are higher in 2009 than they were in 1971 and the poverty rates using disposable income are smaller in 2009 than in 1971. Redistribution has contributed most to the changes of the poverty rate by disposable income. From 1971 to 1990 the poverty rate declined mainly because the income transfer system was more redistributive in 1990 than in 1971. From 1990 to 2009 redistribution increased the poverty rate. Changes in the distribution of factor income and socio-demographic structure have had smaller effects on the poverty rate. However, the distributions of factor income by age and especially by education structure have increased the poverty rate. The decline of the number of working adults in the households has increased and the growth of educational levels has decreased the poverty rate.
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