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Top Incomes in Sweden during Three-Quarters of a Century: A Micro Data Approach

Author

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  • Gustafsson, Björn Anders

    (Göteborg University)

  • Jansson, Birgitta

    (University of Gothenburg)

Abstract

This paper aims to throw light on the development of top incomes in Sweden as well as the causes for change. Using household income data we show that since the first half of the 1980s, real income at the top of the distribution has developed more favourably than for other groups. This contrasts with the changes which occurred prior to the 1980s. Reasons for the rise in the top income share are several: the development of stock prices, the tax reform which made income taxes not progressive at the top of the scale, and the labour market change of top wages increasing more rapidly than others.

Suggested Citation

  • Gustafsson, Björn Anders & Jansson, Birgitta, 2007. "Top Incomes in Sweden during Three-Quarters of a Century: A Micro Data Approach," IZA Discussion Papers 2672, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp2672
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    References listed on IDEAS

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    1. Björn Gustafsson & Edward Palmer, 2002. "Was the Burden of the Deep Swedish Recession Equally Shared?," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 48(4), pages 537-560, December.
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    3. Roine, Jesper & Waldenström, Daniel, 2005. "Top Incomes in Sweden over the Twentieth Century," SSE/EFI Working Paper Series in Economics and Finance 602, Stockholm School of Economics.
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    5. Thomas Piketty, 2005. "Top Income Shares in the Long Run: An Overview," Journal of the European Economic Association, MIT Press, vol. 3(2-3), pages 382-392, 04/05.
    6. Simon Kuznets & Elizabeth Jenks, 1953. "Shares of Upper Income Groups in Savings," NBER Chapters, in: Shares of Upper Income Groups in Income and Savings (1953), pages 171-218, National Bureau of Economic Research, Inc.
    7. Alison L. Booth, 2006. "The Glass Ceiling in Europe: Why Are Women Doing Badly in the Labour Market?," CEPR Discussion Papers 542, Centre for Economic Policy Research, Research School of Economics, Australian National University.
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    11. James Albrecht & Anders Bjorklund & Susan Vroman, 2003. "Is There a Glass Ceiling in Sweden?," Journal of Labor Economics, University of Chicago Press, vol. 21(1), pages 145-177, January.
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    Cited by:

    1. Stefan Bach & Giacomo Corneo & Viktor Steiner, 2007. "From Bottom to Top: The Entire Distribution of Market Income in Germany, 1992-2001," SOEPpapers on Multidisciplinary Panel Data Research 51, DIW Berlin, The German Socio-Economic Panel (SOEP).
    2. Anthony B. Atkinson & Thomas Piketty & Emmanuel Saez, 2011. "Top Incomes in the Long Run of History," Journal of Economic Literature, American Economic Association, vol. 49(1), pages 3-71, March.

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    More about this item

    Keywords

    income distribution; tax reform; Sweden;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • N34 - Economic History - - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy - - - Europe: 1913-

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