CONCLUDING REMARKS - Patterns of Inequality: Income Inequality, Homogamy and Social Mobility in

This PhD thesis has investigated inequality patterns in Finland from the early 18^th century to the early 21^st century, specifically income inequality in the years 1865–2019, social mobility from approximately 1700to 2000 and marriage homogamy from approximately 1700–1910. The main sources utilised in this thesis are the following: income tax and income distribution statistics for income inequality as well as population registers for homogamy and social mobility. Even though many data and methodological challenges exist when observing inequality patterns over a long stretch of time, valuable trends and patterns can be revealed.

Finland transformed from being an unequal rural region into being a highly developed and equal Nordic welfare state during the research period. The struggle to make a living has been a visible part of Finnish history, where a great social divide existed between landowners and the landless. Land ensured a source of livelihood and high status, but it also brutally influenced the odds of survival during crises. Therefore, families sought to maintain their positions in the social strata through homogamous marriage strategies. They mainly succeeded during the 18^th century, however downward social mobility became more common during the 19^th century due to a scarcity of cultivatable land. From the 1870s onwards, Finland took its first steps in achieving modern economic growth. This period of unparalleled economic growth widened the social divide and income gaps between the haves (white-collar workers and farmers) and the have-nots (landless). Moreover, opportunities drastically diminished at the time, especially the chance to rise from the labour class to white-collar positions. Whereas industrialisation created new winners and losers, modernisation and urbanisation started to reduce the prevailing marriage strategies.

In contrast, the 20^th century was a century of equalisation and development. Modernisation, economic development and changes in the social structure enhanced social mobility. In addition, shocks to capital, the adoption of new redistributive policies and institutional influences starting from the early 20^th century diminished income inequalities. The process of establishing a Nordic welfare state that began in the early 20^th century and accelerated especially after the mid-1960s diminished the gaps in opportunities as well as income inequalities. Investments in public education considerably enhanced the chances for persons to enjoy more equal opportunities. Despite a brief period of reversals in the late 20^th century, Finland has significantly lower income inequalities and its citizens have greater possibilities to pursue an occupation or choose a spouse independent of their social background in comparison with their ancestors in previous centuries.

This thesis answered many research questions, but it also opened up new avenues for research and new questions by exploring fresh data and patterns on income inequality, social mobility and heterogamy during the last 300 years or so in Finland. Perhaps the most important practical implication of this thesis is the creation of a new time series for measuring inequality, making it possible for researchers to find answers to many other research questions. However, to answer crucial questions in the future, there is still a need for additional data. For example, income inequality should be explored within and between regions, which would enable researchers, if linked correctly to the relevant data, to study possible causal links. In addition, we only have scattered information about the inequalities between and within social groups, although it is one of the most crucial issues in inequality. Moreover, the roles of complex institutional systems are largely unknown. Also, it is crucial to understand the intergenerational mechanisms affecting the cultural and material capital of families to better improve our knowledge of equal opportunities and stratification. Finally, the connections and relations between income inequality, social mobility and homogamy should be studied more, for example by looking more deeply at individual family lines, where the complex system of inequality, persistence and strict marriage patterns can be observed more comprehensively.

Today, the Nordic countries are the most equal countries on the planet according to many socio-economic measures, and they share many similar features that lower the gap between the haves and the have-nots, such as redistributive income taxes and social transfers and primarily publicly funded education. Some argue that the ‘Nordic dream’ that connects equality and prosperity is enabled by homogeneous populations in those countries. However, this study has shown that Nordic equality is a myth from a longer historical standpoint as well as an institutional standpoint and that their features have been constantly transforming throughout history. The levels of inequality in a society are influenced by the adopted policies and institutions as well as by the strength and type of prevailing market forces. Moreover, it seems that particular events in history (e.g. famine, wars) contribute significantly to inequality not only for those directly experiencing them but also for successive generations. Thus, it might be valuable to study in more depth specific events and their aftermath since they often change societies more than we first realise, for instance with respect to the presumably long-lasting impacts of Covid-19.

It is likewise crucial to investigate the varying levels of inequality in more depth since the continued prevalence of the ‘Nordic dream’ is by no means certain in future decades. The results presented in the PhD thesis suggest that lower income inequality is closely connected with having greater opportunities in life. Moreover, according to Björklund, Roine, and Waldenström (2012), even in equalitarian Sweden, capitalist dynasties exist that transmit their position through multiple generations via wealth and inheritance. In many countries, including the US, the deterioration of

opportunities has occurred despite the widely held view that equal opportunity is the ultimate goal of equality, a position justified not least by the standards of morality (Jäntti and Jenkins 2015; Björklund and Jäntti 2000; Song et al. 2020; Long and Ferrie 2013a, 2013b). The probable worsening of equality of opportunity is not only detrimental for the poor but also for development and prosperity overall, since equal opportunities play a central role in economic growth via human capital accumulation, innovation, investments and the efficiency of resource allocation (e.g. Acemoglu and Robinson 2012;

2015, p. 23; Galor and Moav 2004). Therefore, we should devote more attention to examining the many facets of inequality to ensure a brighter future for societies as ‘the lands of opportunities’.

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In document Patterns of Inequality: Income Inequality, Homogamy and Social Mobility in Finland, c. 1700–2019 (sivua 71-200)