Women’s Income in Norway 1970–2009 Women’s Income in Norway 1970–2009 Hilde Bojer www.folk.uio.no/hbojer hilde.bojer@econ.uio.no June 22, 2012 Women’s Income in Norway 1970–2009 Introduction An empirical analysis of Norwegian women’s incomes: Their incomes relative to men’s incomes Women’s Income in Norway 1970–2009 Introduction An empirical analysis of Norwegian women’s incomes: Their incomes relative to men’s incomes Inequality Women’s Income in Norway 1970–2009 Introduction An empirical analysis of Norwegian women’s incomes: Their incomes relative to men’s incomes Inequality Shares of income Women’s Income in Norway 1970–2009 Introduction An empirical analysis of Norwegian women’s incomes: Their incomes relative to men’s incomes Inequality Shares of income Income by age groups Women’s Income in Norway 1970–2009 Data The data are all from the income surveys of Statistics Norway, based on income tax returns. Women’s Income in Norway 1970–2009 Data The data are all from the income surveys of Statistics Norway, based on income tax returns. For the period 1970 – 1992 they are sample surveys of quality increasing with the years. From 1993 on they are complete register data, covering the whole resident adult population of Norway. Women’s Income in Norway 1970–2009 Data The data are all from the income surveys of Statistics Norway, based on income tax returns. For the period 1970 – 1992 they are sample surveys of quality increasing with the years. From 1993 on they are complete register data, covering the whole resident adult population of Norway. Details about the data are give at the end. Women’s Income in Norway 1970–2009 Norway is regarded as outstanding with regard to women’s equality. Women’s Income in Norway 1970–2009 Norway is regarded as outstanding with regard to women’s equality. In particular, women’s labour force participation is only slightly lower than men’s. Women’s Income in Norway 1970–2009 Norway is regarded as outstanding with regard to women’s equality. In particular, women’s labour force participation is only slightly lower than men’s. Fertility is among the highest in Europe, approx 1.9 children born per female. Women’s Income in Norway 1970–2009 Norway is regarded as outstanding with regard to women’s equality. In particular, women’s labour force participation is only slightly lower than men’s. Fertility is among the highest in Europe, approx 1.9 children born per female. Still, women’s average income is only about 60 per cent of men’s. Women’s Income in Norway 1970–2009 Norway is regarded as outstanding with regard to women’s equality. In particular, women’s labour force participation is only slightly lower than men’s. Fertility is among the highest in Europe, approx 1.9 children born per female. Still, women’s average income is only about 60 per cent of men’s. Half of the difference is due to lower average wages, half is due to women’s part time work. Women’s Income in Norway 1970–2009 Labour force participation Married women started joining the paid labour force sometime in the 1960s. Good statistics of labour force participation and incomes are only available from the 1970s onward. Women’s Income in Norway 1970–2009 Labour force participation Married women started joining the paid labour force sometime in the 1960s. Good statistics of labour force participation and incomes are only available from the 1970s onward. The 70s were also the years of the greatest change. Women’s Income in Norway 1970–2009 Structural changes Table: Women by occupational status 1970 – 2009 Year Independent Employee Pensioner Other 1970 1* 25* 17* 57* 1982 2 41 25 32 1992 2 51 33 14 2009 2 52 33 14 The impact on relative incomes is shown in figure 1 Men 09 5 59 25 11 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 1997 1996 1995 1994 1993 1992 1991 1990 1989 1988 1987 1986 1985 1984 1983 1982 1981 1980 1979 1978 1977 1976 1975 1974 1973 1972 1971 1970 Women’s Income in Norway 1970–2009 Figure 1: Women’s relative income 1970 – 2009 80 70 60 50 40 All 30 Employees Pensioners 20 10 0 Women’s Income in Norway 1970–2009 Comments The increase in relative income is due to more women becoming employees and old age pensioners. Women’s Income in Norway 1970–2009 Comments The increase in relative income is due to more women becoming employees and old age pensioners. All Norwegians 67 years and over are entitled to a minimum old age benefit. Women’s Income in Norway 1970–2009 Comments The increase in relative income is due to more women becoming employees and old age pensioners. All Norwegians 67 years and over are entitled to a minimum old age benefit. The increase in labour force participation came while there was still a big shortage of child care institutions and before such arrangements as generous paid maternity leave. Women’s Income in Norway 1970–2009 Comments The increase in relative income is due to more women becoming employees and old age pensioners. All Norwegians 67 years and over are entitled to a minimum old age benefit. The increase in labour force participation came while there was still a big shortage of child care institutions and before such arrangements as generous paid maternity leave. Paid paternity leave is fairly recent. Women’s Income in Norway 1970–2009 Comments About half of employed Norwegian women work part time. Women’s Income in Norway 1970–2009 Comments About half of employed Norwegian women work part time. The majority are employed in the caring professions, and in public service. Women’s Income in Norway 1970–2009 Comments About half of employed Norwegian women work part time. The majority are employed in the caring professions, and in public service. The labour market is strongly segregated by sex, Women’s Income in Norway 1970–2009 Comments About half of employed Norwegian women work part time. The majority are employed in the caring professions, and in public service. The labour market is strongly segregated by sex, but there is reason to believe that women are in typically female professions, and work part time, from choice. Women’s Income in Norway 1970–2009 Women and men have different sources of income, in particular, capital income mainly accrues to men. Women’s Income in Norway 1970–2009 Women and men have different sources of income, in particular, capital income mainly accrues to men. The large increases, and fluctuations in, capital income explain the fluctuations in relative income and income inequality during the 2000’s Women’s Income in Norway 1970–2009 Women’s and men’s share of income 2009 by income category 100 % 90 % 80 % 70 % 60 % 50 % Women Men 40 % 30 % 20 % 10 % 0% Gross Income Earnings Capital income TransfersA Child benefit Total income Women’s Income in Norway 1970–2009 Income inequality Income inequality is computed for women and men separately. Women’s Income in Norway 1970–2009 Income inequality Income inequality is computed for women and men separately. The inequality measure used is the Generalised Entropy Measure with parameter 0.5. The GEM = 0 for complete equality, but has no fixed upper limit. Women’s Income in Norway 1970–2009 Income inequality Income inequality is computed for women and men separately. The inequality measure used is the Generalised Entropy Measure with parameter 0.5. The GEM = 0 for complete equality, but has no fixed upper limit. It is additively group decomposable: Total inequality is weighted sum of within-group inequalities plus between-group inequality. This property makes it easy to interpret the connection between inequality and structural changes. Women’s Income in Norway 1970–2009 Income inequality women 1970–2009 1,4 1,2 1 0,8 All W Employees Pensioners 0,6 0,4 0,2 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 Women’s Income in Norway 1970–2009 Income inequality women and men 1984–2009 0,500 0,450 W 0,400 0,350 0,300 0,250 M 0,200 0,150 0,100 0,050 0,000 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 Women’s Income in Norway 1970–2009 Income by age The last graph is designed to show structural differences between men’s and women’s income profile by age Women’s Income in Norway 1970–2009 Income by age The last graph is designed to show structural differences between men’s and women’s income profile by age as well as the impact of child benefit The blue line shows gross income + child benefit Women’s Income in Norway 1970–2009 Women’s and men’s income by age group 2009 600000 M 500000 400000 W 300000 200000 100000 0 1 2 3 4 5 6 7 8 9 10 11 12 Women’s Income in Norway 1970–2009 The data For 1970, 73, 76, 79: Income surveys of about 4000 households. Persons with no income not included. Basic computations carried out by statistics Norway. Author’s own computations for all other years. For 1982 and 1984 – 1992: Income surveys of a steadily increasing number of households, covering the whole population. Data provided by Norwegian Social Science Data Services. For 1993 – 2009: Register data for the whole population, provided by Statistics Norway with the permission of the Norwegian data protection official for research. Women’s Income in Norway 1970–2009 Inequality measure The Generalised Entropy Measure: α X Yj 1 1 I (α) = − 1 α(α − 1) n m j Here, Yj stands for the income of person j. The version used here is with parameter = 0.5, which gives the same ordering as the more well known Gini coefficient. (1) Women’s Income in Norway 1970–2009 Some references I Bojer, Hilde (2003), Distributional Justice. Theory and measurement, Routledge I Bojer, Hilde (2008), ‘Income inequality and the economic position of women in Norway 1970 – 2002’ in Gianni Betti and Achille Lemmi (Eds): Advances on Income Inequality and Concentration measures, Routledge