Income statistics for households. Income distribution 2008

Capital losses reduce inequality

Huge capital losses within households at the top of the income distribution contracted income differentials.

2008 was once again a year of substantial rises in household income. The median equivalent income rose by 3.9 per cent in fixed prices. The corresponding figure for 2007 was 7.5 per cent.

Weaker growth in top incomes

People at the top of the income distribution had a slightly weaker growth in household income compared to the median. The income of the highest income class (the 90^{t h} percentile) grew for instance by 3.5 per cent in 2008. For people at the very highest part of the income distribution, for instance the 95^{t h} and 99^{t h} percentile, the rise in household income was even smaller. The financial situation of households at the top of the income distribution is strongly influenced by changes in the financial markets. In the wake of the finance crisis, many shareholders sold off shares that had fallen in value. These capital losses led to a weaker growth in household income for those at the top of the income distribution compared to people in the middle of the distribution. The share of total household income received by the top decile was reduced from 21.4 per cent in 2007 to 20.8 per cent in 2008.

Even people at the bottom of the income distribution experienced a weaker income growth than the median in 2008. The lowest income class (10^{t h} percentile) had an increase in household equivalent income of 3.3 per cent in 2008. Many of the people that constitute the lowest income classes are newly-arrived immigrants. The number of immigrants coming to Norway in 2008 was the highest ever.

Tables

• Table 1 Distribution of household equivalent income after taxes, between persons. (EU-scale). Decile shares and cumulative decile shares. 1986-2008. Per cent
• Table 2 Measures of income despersion. Household equivalent income (EU-scale) between persons. 1986-2008
• Table 3 Composition of total household income within decile groups for household equivalent income after taxes , between persons. (EU-scale). Share of total income. 1990, 1995, 2000, 2005, 2006, 2007 and 2008. Per cent
• Table 4 Household equivalent income (EU-scale), for different percentiles of the income distribution. NOK in 2008

Published 11 March 2010 © Statistics Norway