Poverty in Today’s Norway: A Brief Overview

Ivar LødemelErika Gubrium

Oslo University College

Norwegian Poverty• Concept of poverty has shifted significantly within Norway within the last 100 years.

“Poverty” and “the poor” differs greatly before and after the establishment of the welfare state.

• Paradox 1: due to broad extension of social insurance benefits starting after WWII and heightened in mid-1960s - groups within the category “poor” represent Norway’s most marginalized groups, who are entitled at most only to a “last resort”, means-tested social assistance scheme (Lødemel 1997).

• Norway’s strong welfare state predicated on full employment• Welfare state calculation of rights vs duties – dependence vs. activation and generosity

(protection) vs. restriction (motivation) – rational choice thinking• Paradox 2: Generous benefits have attracted individuals from poorer countries to seek

residence in Norway. Newer ”poor” include immigrant groups – integration an issue. • Norway has translated calculation of right vs duties to increasingly focus on culture,

integration and exclusion (gender an issue here too)

Fighting Poverty: Strategies for Re-distribution

• Primary redistribution: regulation of labor market (compressed wage structure via large public sector, centralized/tripartite wage negotiations: unions, employer groups, national government)

Strategies, con’t + dilemmas

• Secondary redistribution: taxes and fees + benefits and services (i.e. healthcare, free higher education, nursery school, pensions)

• Most services a universal right, starting at birth (cradle-to-grave)

Recent Challenges

• Women in labor market – wage equality, depends family-friendly labor policies and provision of childcare

• Integration of immigrants – childcare, hiring practices, language/cultural challenges

• Demographic shift – older Norwegian population – maintaining pension system absent goal of full employment

• Labor ”activation” programs and specially targeted benefits (ex: defrayed costs for nursery school in high immigrant areas) to address these issues