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Wealth Concentration over the Path of Development: Sweden, 1873–2006

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Author Info
Roine, Jesper () (Stockholm School of Economics)
Waldenström, Daniel () (Research Institute of Industrial Economics (IFN))

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Abstract

We study the development of wealth concentration in Sweden over 130 years, from the beginning of industrialization until present day. Our series are based on a wide array of new evidence from estate- and wealth tax data, estimates of foreign and domestic family firm-wealth and of pension and social security wealth. We find that the Swedish wealth concentration was at a historically high level in the agrarian state and that it did not change much during early industrialization. From World War I up until about 1950, the richest percentile lost ground to the rest of the top wealth decile where relatively income rich households accumulated new wealth. In the postwar period, the entire top decile lost out relative to the rest of the population, much due to the spread of owner-occupied housing. Around 1980, wealth compression stopped and inequality increased. We introduce new ways of approximating the effects of international flows and find that the recent increase in Swedish wealth inequality is likely to be larger than what official estimates suggest.

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Publisher Info
Paper provided by Research Institute of Industrial Economics in its series Working Paper Series with number 722.

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Length: 38 pages
Date of creation: 16 Oct 2007
Date of revision: 13 Jun 2008
Handle: RePEc:hhs:iuiwop:0722

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Postal: Research Institute of Industrial Economics, Box 55665, SE-102 15 Stockholm, Sweden
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Related research
Keywords: Wealth concentration Wealth distribution Inequality Income distribution Sweden Welfare state Pension wealth Augmented wealth

Other versions of this item:

Find related papers by JEL classification:
D14 - Microeconomics - - Household Behavior - - - Personal Finance
D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
N33 - Economic History - - Labor and Consumers, Demography, Education, Income, and Wealth - - - Europe: Pre-1913
N34 - Economic History - - Labor and Consumers, Demography, Education, Income, and Wealth - - - Europe: 1913-

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This page was last updated on 2008-6-30.


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