Young people across the Western world are on track to become the first generation that will be poorer than their parents. Millennials, individuals born from 1980 to 2000, living in the US and the UK, are under pressure from high costs of education and housing, and will be the first generation in history to be poorer in adulthood than the generation that came before them, with one exception – Norway.
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Young Norwegians have experienced the opposite – a 13 percent increase in disposable annual income compared to Generation X, born between 1966 and 1980, meaning they have an annual disposable income of 460,000 kroner (about 360,000 kuna), writes BBC and wonders whether this golden age of Norway will last.
On the other hand, millennials in the US have 5 percent less income than the generation before them when they were the same age, in Germany they have 9 percent less, and millennials from Southern Europe have up to 30 percent less disposable income.
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Youth unemployment, for those aged 15 to 29, in Norway is relatively low at 9.4 percent, while in OECD countries it is 13.9 percent.
The first and obvious factor for the growth of the Norwegian economy over the last three decades is the enormous oil and gas sector, but it is not only important how much Norway earns, but what it does with that money. Norway saves this money in the largest sovereign fund in the world, which invests in over 9,000 companies and is currently worth $1 trillion. Part of this money, therefore, returns to society, so instead of a few earning a lot, many have access to this wealth.
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Despite this saving, taxes in Norway are high and unions negotiate the minimum wage. This means that young people in lower-paid industries see their wages increase every year, so the gap between those who earn a lot and those who earn relatively little is not as large as in other countries.
High social benefits and highly subsidized healthcare also help. Unemployment benefits amount to 60 percent of the previous salary for two years, childcare costs are low, and the parental leave system is very generous, allowing for high participation of women in the workforce.
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Part of the puzzle includes free education at most schools and public universities, easy access to loans, as well as a high level of student employment, explains BBC.
