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

Jan O. Jonsson (), Carina Mood () and Erik Bihagen ()
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Jan O. Jonsson: Stockholm University
Carina Mood: Stockholm University
Erik Bihagen: Stockholm University

IZA Journal of European Labor Studies, 2016, vol. 5, issue 1, 1-20

Abstract: 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

Keywords: Poverty; Recessions; Income inequality; Sweden; Long-term poverty; Material deprivation (search for similar items in EconPapers)
Date: 2016
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DOI: 10.1186/s40174-016-0051-8

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