The Emergence of a Swedish Underclass? Welfare State Restructuring, Income Inequality and Residential Segregation in Malmö, 1991-2008

Simone Scarpa

Economia & lavoro, 2013, issue 2, 121-138

Abstract: Recent political and academic debates inSweden have been dominated by a view ofurban problems as endogenously generated bythe spatial concentration of individuals withsimilar ethnic and socioeconomic characteristicswithin the same neighbourhoods. The impact ofwelfare state retrenchment on income inequalityand residential segregation instead remained anunder-investigated and somehow neglected issuein recent research. This paper aims at filling thisgap by analysing income inequality dynamics inMalmö in the period 1991-2008. This city offersan interesting case of analysis, given the high ratesof social problems compared to other Swedishcities. The results reveal that the increase inincome inequality in Malmö has been especiallydue to the reduced redistributive impact ofthe Swedish welfare state. Furthermore, theincrease in residential segregation by incomecan be attributed to the parallel increase in citywideincome inequality rather than to an allegedincrease in neighbourhood sorting.

Date: 2013
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Persistent link: https://EconPapers.repec.org/RePEc:caq:j950ix:doi:10.7384/75273:y:2013:i:2:p:121-138

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