Lavinntekt

Lavinntekt is a term used in Norwegian statistics to describe individuals or households whose income is low relative to the rest of the population. The standard reference is disposable income after taxes and transfers, adjusted for household size, with the threshold commonly set at 60 percent of the median equivalised disposable income. This makes lavinntekt a measure of relative poverty rather than an absolute level of income.

Measurement and usage

Lavinntekt is typically calculated using equivalised disposable income, which accounts for differences in household composition. The 60 percent threshold is applied to the distribution of this measure to identify who falls below the poverty line. Statistics Norway (SSB) and international bodies such as the OECD and Eurostat use this definition to monitor poverty, social inclusion, and living conditions. The indicator can be analyzed for individuals or households and across age groups, regions, and time periods.

Causes and patterns

Risk factors for lavinntekt include low educational attainment, unemployment or underemployment, disability, aging, and immigrant or minority background. Family structure matters, with single-parent households and larger households more often overrepresented among those with lavinntekt. Regional economic variations and cyclical conditions also influence the share of people with lavinntekt.

Policy relevance

Lavinntekt informs welfare and social policy by highlighting groups in need and measuring changes over time. Responses typically involve income support, tax credits, housing allowances, child benefits, and active labor market policies aimed at increasing employment and earnings potential.

Limitations

As a relative measure, lavinntekt depends on overall income distribution and price levels, which may mask material hardship for some households. It does not directly capture deprivation or living standards beyond income, and estimates can be sensitive to methodological choices such as the equivalence scale.