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9202
More large families at risk of low income
statistikk
2005-10-14T10:00:00.000Z
Income and consumption;Social conditions, welfare and crime;Immigration and immigrants
en
inntind, Households' income, particular groups, income distribution, household income, low-income groups (for example single parents, long-term sick, supplementary benefit recipients), poor, median income, low-income limits, EU scale, OECD scaleIncome and wealth, Living conditions , Income and consumption, Income and consumption, Social conditions, welfare and crime, Immigration and immigrants
false

Households' income, particular groups, 1996-2003

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More large families at risk of low income

Despite the fact that most households with children have experienced a substantial rise in income since the mid-1990s, many children still live in low-income households. Moreover, the proportion of children living in persistent low income has risen in recent years, mainly among households with three or more children.

Both the EU and OECD method of measuring low income suggest an increase in the proportion of children in low-income households. According to the EU, roughly 6 per cent of children under 18 years of age were living in persistent low income in the three-year period 2001-2003, up from 4 per cent in the period 1997-1999. The OECD results suggest a more modest rise in the same period, from 2 to 3 per cent. Large families in particular are more at risk of low income. According to the EU, the risk of persistent low income for couples with three or more children has increased from 4 to 7 per cent between 1997-1999 and 2001-2003. The corresponding OECD estimate is an increase from 3 to 5 per cent.

Reduced labour force participation

An important explanation for the rising proportion of children in low-income households is weaker labour force attachment among adult household members. This is particularly the case for children from ethnic minorities, a group that is over-represented among people with persistent low income. Since the late 1990s, there has been a steady rise in low income among immigrant children of non-western background. In the same period, there has been a substantial rise in unemployment, particularly among non-western immigrants.

An additional factor may be the decline in the real value of family allowance to low-income households with children. The proportion of total income from family allowance (including parents' tax deduction and cash-for-care benefit) fell from 17 per cent in 1997 to 13 per cent in 2003 for the 10 per cent with the lowest income. In the same period, the average number of children per household in that group increased from 2.0 to 2.2.

Fewer old-age pensioners at risk of low income

When we use the low-income definition proposed by the EU there are still many old-age pensioners at risk of low income, mainly because this low-income cut-off is above the minimum pension. However, due to a steady decline in the number of pensioners who receive the minimum benefit, the proportion at risk of low income has fallen in recent years. While 32 per cent of all old-age pensioners were living in low-income families in 1996, the percentage fell to 22 per cent in 2003.

Norway in a European perspective

In a European perspective relatively few people live in low-income households in Norway. Statistics from Eurostat suggest that people in the Nordic countries, the Czech Republic, Hungary, Slovenia and Luxembourg are at low risk of poverty compared with the rest of Europe. In these countries roughly one in ten was at risk of poverty in 2003, compared with 16 per cent for the EU25. The EU countries with the highest poverty rates are Greece, Ireland and Slovakia, where more than one in five were at risk of poverty. ( http://epp.eurostat.cec.eu.int/cache/ITY_OFFPUB/KS-NK-05-013/EN/KS-NK-05-013-EN.PDF )

It is, however, important to bear in mind that this definition of poverty ignores the fact that the poverty line is substantially higher in a rich country than in a poor country. For instance, despite the fact that Norwegians have the same risk of poverty as people from the Czech Republic and Hungary the poverty line in Norway is more than twice as high as in these two countries after adjustment for purchasing power (PPS).

The data

The data are taken from the annual income distribution surveys for households. These are sample surveys with a sample size ranging from roughly 10 000 households to 28 000 households for the period 1996-2003. One part of the survey consists of a panel survey, i.e. a survey where the same individuals are interviewed several times over several years. The indicators are updated every year.

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