Study on housing exclusion. Welfare policies, housing provision and labour markets. Country report for Sweden

2010 Study on housing exclusion. Welfare policies, housing provision and labour markets by Lena Magnusson Turner. European Commission.

Summary
The objective of the Study on Housing and Exclusion is to provide evidence on the interaction between housing, welfare and employment in the light of recent reforms in the European Union. This report presents new quantitative and qualitative evidence for Sweden. The source materials are primarily derived from EU-SILC (the EU Survey of Income and Living Conditions), focus groups and interviews with key stakeholders.

Sweden is classified as a social democratic welfare state, which implies a strong public service sector distributing welfare facilities as work, housing, day care and so forth to all families having needs. The welfare policy is also comprehensive. Other aspects are active labour market policies, funding through payroll taxes and a social security system requiring high levels of female and male employment. Since 2007 taxes on income from work have decreased and one outcome is a less generous welfare system for those in real need.

The social security system has a strong effect on indivuduals' welfare and reduces risk of poverty. After social transfers 11.6 per cent of all individuals in 2007 lived in a household at risk of poverty compared to 28 percent before social transfer. Lone parents and single households, especially single women, have the highest risk of poverty.

EU-SILC does not distinguish between private and public rented dwellings. Public housing is comprehensive but has also a social mission, evidenced by a somewhat higher risk of poverty among households in public compared to in private rented dwellings. Nevertheless, low income households do not all live in rented dwelling. More than one third in the first and close to halv in the second income deciles lives in owner occupation. Although, in higher income deciles rented dwellings appear not to be an alternative. In total, close to 70 percent of all individuals in Sweden live in owner occupation. The most common household group is working age couples with kids.