Income poverty in Finland 1971-1995

This paper examines the trends in low-income poverty in Finland using relat ive and fixed-price poverty lines. Poverty declined over the 1971-1990 peri od and stayed fairly constant in the 1990s. Poverty declined prior to 1990 because unemployment was low, economic growth fairly stable and high and ma ny welfare-state institutions were expanded. The stability of poverty in th e 1990s is surprising in light of the large decline in GDP and dramatically increased unemployment. The poverty risks of demographic groups that have traditionally been at high risk of poverty, such as the elderly and lone pa rents, declined substantially during the period and are lower than that of the average. This can be contrasted with the less favourable development of poverty for non-aged (mostly young) single persons. In 1995, the typical p oor Finn was a young single adult.