The long-run history of income inequality in Denmark: Top incomes from 1870 to 2010
AbstractWe use historical publications and – for more recent years – micro-data from the income tax and wealth tax returns to estimate the development in income inequality in Denmark over the last 140 years. The paper breaks new ground in treating the specific features of the Danish Tax system and in analysing the implications of the switch from joint to individual taxation. We show that income inequality have declined substantially over the last century with an income share for the top 1 per cent dropping from 27.6 per cent from its peak in 1917 to 6.4 in 2010. However the decline is not simply a secular downward trend consistent with the downward part of a Kuznets curve. Instead there seems to be several distinct phases, interleaved with periods of stability.
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Bibliographic InfoPaper provided by Economic Policy Research Unit (EPRU), University of Copenhagen. Department of Economics in its series EPRU Working Paper Series with number 2013-01.
Length: 48 pages
Date of creation: Feb 2013
Date of revision:
Contact details of provider:
Postal: Øster Farimagsgade 5, Building 26, DK-1353 Copenhagen K., Denmark
Phone: (+45) 3532 4411
Fax: +45 35 32 30 00
Web page: http://www.econ.ku.dk/epru/
More information through EDIRC
Income inequality; Income distribution; Wealth distribution; Top incomes; Taxation; Denmark;
Find related papers by JEL classification:
- D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
- H2 - Public Economics - - Taxation, Subsidies, and Revenue
- J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
- N3 - Economic History - - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy
This paper has been announced in the following NEP Reports:
- NEP-ACC-2013-03-02 (Accounting & Auditing)
- NEP-ALL-2013-03-02 (All new papers)
- NEP-EUR-2013-03-02 (Microeconomic European Issues)
- NEP-HIS-2013-03-02 (Business, Economic & Financial History)
- NEP-LTV-2013-03-02 (Unemployment, Inequality & Poverty)
- NEP-PBE-2013-03-02 (Public Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Thomas Piketty, 2003. "Income Inequality in France, 1901-1998," Journal of Political Economy, University of Chicago Press, vol. 111(5), pages 1004-1042, October.
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"Optimal Taxation of Top Labor Incomes: A Tale of Three Elasticities,"
NBER Working Papers
17616, National Bureau of Economic Research, Inc.
- Thomas Piketty & Emmanuel Saez & Stefanie Stantcheva, 2014. "Optimal Taxation of Top Labor Incomes: A Tale of Three Elasticities," American Economic Journal: Economic Policy, American Economic Association, vol. 6(1), pages 230-71, February.
- Piketty, Thomas & Saez, Emmanuel & Stantcheva, Stefanie, 2011. "Optimal Taxation of Top Labor Incomes: A Tale of Three Elasticities," CEPR Discussion Papers 8675, C.E.P.R. Discussion Papers.
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- Pinje, Jori Veng & Boserup, Simon Halphen, 2011.
"Tax evasion, information reporting, and the regressive bias hypothesis,"
28406, University Library of Munich, Germany.
- Simon Halphen Boserup & Jori Veng Pinje, 2010. "Tax Evasion, Information Reporting, and the Regressive Bias Hypothesis," EPRU Working Paper Series 2010-13, Economic Policy Research Unit (EPRU), University of Copenhagen. Department of Economics.
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NBER Working Papers
15408, National Bureau of Economic Research, Inc.
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"Income and Wealth Concentration in Spain in a Historical and Fiscal Perspective,"
CEPR Discussion Papers
5836, C.E.P.R. Discussion Papers.
- Facundo Alvaredo & Emmanuel Saez, 2007. "Income and wealth concentration in Spain in a historical and fiscal perspective," PSE Working Papers halshs-00587714, HAL.
- Thomas Piketty & Emmanuel Saez, 2003. "Income Inequality In The United States, 1913-1998," The Quarterly Journal of Economics, MIT Press, vol. 118(1), pages 1-39, February.
Blog mentionsAs found by EconAcademics.org, the blog aggregator for Economics research:
- The long-run history of income inequality in Denmark: Top incomes from 1870 to 2010
by maximorossi in NEP-LTV blog on 2013-03-04 12:48:11
- Christoph Schinke, 2014. "Government Ideology, Globalization, and Top Income Shares in OECD Countries," Ifo Working Paper Series Ifo Working Paper No. 181, Ifo Institute for Economic Research at the University of Munich.
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