Generational Income and Wealth Trajectories: Where Is the Path Leading for Today’s Young?

Abstract

We examine the income and wealth trajectories of different generations using Statistics Finland’s register data and statistical databases and assess whether younger generations’ concerns about their economic future have statistical grounding. On the income side, we find reason for rational optimism: the weak growth in real incomes since 2013 has affected all generations equally, and the current younger generation does not appear to be falling permanently behind older cohorts in terms of lifetime income growth. The picture is less encouraging when it comes to wealth, where house price developments will largely determine how the situation unfolds. The most significant cause for concern is the declining level of education among the most recent cohorts, as education has consistently proven to be an excellent investment — for the individual and for the economy alike. Decisions on educational resources rest primarily with policymakers, and young people’s trust in these institutions has been on the rise.

• ISSN: 2954-2618 (Online)
• ISBN: 978-952-209-236-6 (Online)
• JEL: D31, D15, I26
• Publication in PDF-format