Social Inequalities in Finland Harri Melin Department of Social Research University of Tampere
The case of Finland 5,3 milj. inhabitants Homogenous population: 2,5% immigrants, roma people 8 000, Same people about 7 000, Swedish speaking Finns about 4% One of the most competetive and dynamic economies (before the 2009 crisis) Nordic welfare state: universal social services, full employment, women s participation into full-time employment, social services produced (not any more) and distributed by the public sector. After the economic crisis in the 90 s restructuration: lower benefits, more control Increasing social inequalities: class, poverty, incomes, new divisions in the world of work
Some facts Life expectancy for men 75,8 years and for women 82,9 years. Average household size 2, 1 persons 55 % of the households live in singlefamily houses and 45 % in apartment blocks 85 % are urban dwellers
Finland in the world Gross domestic product / capita 2007 (Eur) USA 35 000 Sweden 34 500 Finland 31 700 UK 31 600 Germany 28 200 Japan 27 300
Finnish economy GDP by economic sector 2007: - Services: 64 - Industrial production: 33 - Agriculture: 3 Employment by economic sector 2007: - Services: 71 - Industrial production: 25 - Agriculture: 4
Social change in Finland From European periphery to modern information society (1850 2009) Rapid structural change in the 1960 s: the development of urban wage labour society Deep economic crisis 1991-1994 Recovery, growth and new crisis 1995-2009; growth of information society
Finland in the 19th century Finland as a developing country Low productivity of agriculture No large scale industry, main exports were timber and tar High fertility and mortality rates Autocratic administration, rank society No ecomic growth
The Finnish Growth Model Lars Mjöset (red.): Norden Dagen derpå, 1986 Economic growth has been based on export industries (paper, machine building, electronics) and high level of savings (home ownership) Class structure: rapid growth of middle classes since 1960 s Political coalitions: 1) soc.dem + peasants;2) centre + conservative Industrial relation: social corporatism with neoliberal tuning
Finnish welfare state Late comer: mainly built in the 60 s Up till now public sector has been the main producer and deliverer of services Low level of compensation In spite of universalism tight control (over customers) Restructuration after the 90 s crisis, NPM as a model
Finnish Infomation Society Model Castells & Himanen: The Information Society and the Welfare State (2002) Survival strategy after the recession Rapid growth of ICT-cluster (Nokia driven) Basic elements: 1) Universities, 2) Cooperation between public and private actors, 3) Special funding agencys (Sitra, Tekes), 4) Welfare state Information society with human faces compared with autocratic and capitalist models
Social Inequalities In the following I shall discuss: Poverty Income distribution Families Intergenerational inequalities Education Unemployment
Poverty Can be measured in many ways: - using relative income method - using relative consumption method - political-administrative measurement - counting income-support recievers
more... Always a relative problem (Finland vs. Bangladesh) Before the 1990 crisis poverty was considered to be a personal problem today a structural problem Since 1990 povery rate (60% median income criteria) has been increasing: in 1990 (7%) in 2004 (11%) Structure of poverty: earlier old people, now unemployed families with children, single mothers
more... Always a relative problem (Finland vs. Bangladesh) Before the 1990 crisis poverty was considered to be a personal problem today a structural problem Since 1990 povery rate (60% median income criteria) has been increasing: in 1990 (7%) in 2004 (11%) Structure of poverty: earlier old people, now unemployed families with children, single mothers
Our household has no money to Eat meat or fish every second day 1996: 8% 2006: 4% Buy new clothes 1996: 16% 2006: 7% Buy new furniture 1996: 43% 2006: 22% For one week holiday trip 1996: 46% 2006: 27% To two or more of the above mentioned 1996: 36% 2006: 18%
Income inequalities In international comparisons an equal income distribution Mean income for men 3 100 euros/month, mean income for women 2 500/month, women s wages is about 80% of male wages People with low incomes (60% level): about 12% Growing risks among single mothers
International gini co-efficient comparison Sweden 23, Finland 26, Netherlands 27, France, 28, Gernamy 28, Ireland 32, Estonia 34, Poland 36, Portugal 41 Mean EU25 = 28
Families Alltogether 1, 437 milj families in Finland Most typical family type is a couple without children, 35 % of all families Couple with children 32% Families with children: 603 000 Single mother families 10% (single father 2%) Registered gay (527) and lesbian couples (562) as a new phenomena
Divorce In the year 1945 44 500 marriages and 5 600 divorces In the year 2001 25 00 marriages and 13 000 divorces Divorce is most typical in the age group 29 35 years. In many cases divorve means increasing economic problems and problems concerning children (who is responsible, who has the rights )
Single mothers 150 000 (single fathers 30 000), increasing numbers One of the most economically vulnerable group in Finland Increasing poverty risk Income / social benefit traps What about the the children?
Old people Rapid demographic change More than 875 000 people over 65-yars and about 393 000 over 75-years. The share of old people is growing rapidly New pressures for local government: to organize services to old people: housing, health care, social service New trend: increasing poverty among old people
Intergenerational inheritance of social problems Poverty: increasing child poverty, increasing poor neighbourhoods Low education: low educated parents have more often low educated children than other families Divorce: more common among those whose parents have also divorced
Education System with no dead ends, offer all citizens equal opportunities to recieve education The aim is that 92.5 per cent of the age group 25-34 years-olds will by 2015 pass an examination on upper secondary or tertiary level. Educational explosition in the 1980 s: universities and polytechnics, more students in technical sciences Excellent PISA results Inequlities: children with univ. Educated father have 12 times prospensity to go to universities than others
Population with educational qualification Population by age group with a qualification from upper secondary schools, vocational schools and colleges, polytechnics or universities in the year 2007-20 24: 81% - 30 34: 86% - 40-44: 86% - 50-54: 77% - 60 64: 59% - over 65: 35%
Unemployment Unemployment rate 1990: 3,2%; 1994: 18,4%; 2000: 9,8%; 2005: 8,4%; 2008: 6,4%, Spring 2009: 8,5% Full employment has never been a prime political goal Unemployment as tool to use control and power Biggest problems: youth unemployment (16%) long-tem unemployment (19 % of all) and unemployment among immigrant population (over 25%) Strong correlation between education and unem ployment
What is the problem? People having social problems are in a week and vulnerable social position There is not many who speak for them (cf. Bourdieu) Most of the those at the bottom are faced with many problems at the same time cumulative nature of social problems Poor education, parents unemployment and poor health are often connected with social problems
New trends More working poor than ever (though working poor is not any big issue) More selective social security Stigma it is your problem Current economic crisis: more unemployment, increasing xenophopia, more poverty Polarization of the society
Changing language New language: no more social problems, only welfare deficits Individualization of social problems: We have some special groups There are equal opportunities but State is no more responsible: we should strengthen the civil society
Conclusion I During past 150 Finnish society has experienced deep changes Major periods: 1) civil war, 2) II world war, 3) great move in the 60 s, 4) economic crisis at the beginning of 90 s A success story: from European periphery to economic prosperity Nordic welfare state, Information society
Conclusions II A country of inequalities: - social class matters - gender inequalities - regional differences - how about ethnic minorities - incerasing social distance between the elites and common people - how about the everyday life?