Björn Gustafsson

Poverty Dynamics in Eight Countries

Despite very different macroeconomic conditions, demographic structures and degrees of income inequality, favorable income changes among low-income families with children were widespread and strikingly similar across the eight countries in our study. In most European countries, the combination of modest inequality and extensive mobility among the poor enabled virtually all families to avoid relative income deprivation at least occasionally. However, even substantial mobility among the poor in the Unites States could not elevate the living standards of one in seven white and two in five black families to a level that was half that enjoyed by a typical American family.

Immigrants and the public sector budget — accounting exercises for Sweden

Net contributions to the public sector budget in Sweden are investigated using large samples of foreign born and native born. The accounts build on various assumptions including that expenditures on public consumption are allocated according to the age of the person. The results indicate that during the period 1983 to 1992 net contributions of immigrants deteriorated. Upon arrival to Sweden, immigrants on average place a burden on the public sector budget but after a few years this no longer applies. Refugees initially put a larger burden on the public sector budget than other immigrants, but such a difference declines with years since immigration.

Income Effects from Labor Market Training Programs in Sweden During the 80's and 90's

Swedish labor market programs appear large from an international perspective, yet their consequences are not fully investigated and understood. In this paper we estimate a switching regression model with training effect modeled as a random coefficient, partitioned in an observed and unobserved component. We investigate labor market training for three cohorts during the 80s and the beginning of the 90s on its effect on earnings. We separate the analysis between Swedish-born and foreign-born individuals to identify differences in their responses to training. The results indicate that there is positive sorting into training. We find that the proportion of trainees having positive rewards from training was not very different from the proportion having negative rewards. This means that the results do not support the view that from efficiency considerations, too few persons were enrolled in labor market training during this period. Differences in results across cohorts can be interpreted as being caused by rapid changes in the labor market. Further, consistent with results from several previous studies we find that being young often means no positive pay-off from training, and the same is found for persons with only primary education. In conflict with what earlier studies have shown, we found that males have a better pay-off from training than females. Rewards from training were higher for foreign-born than for natives and rewards among the former vary by place of birth.