Nordic Economic Policy Review 2018

Increasing Income Inequality in the Nordics

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The contributions document how income inequality in the Nordics in various dimensions have increased over recent decades. These developments are put in an international context. Developments in Denmark, Finland, Norway and Sweden are compared. Important aspects analysed in detail are overall inequality of both market and disposable incomes, the redistribution through the tax and transfer system as well as through the provision of government welfare services, the importance of demographic factors, the developments of both relative poverty and top income shares, and gender inequality.



Top Incomes in Scandinavia – Recent Developments and the Role of Capital Income

This paper deals with the development of top incomes in Scandinavia. I first explain why academia over the past two decades has focused on the income share of top groups, in particular the one percent of the population with the highest incomes. Furthermore, I examine some of the main drivers of inequality that have been considered in the literature and present new suggestive evidence on the role of capital income and, in particular, the shift from interest income to dividends that has occurred over the past decades.


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