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Income taxes and redistribution in the early twentieth century

Author

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  • Sara Torregrosa‐Hetland
  • Oriol Sabaté

Abstract

This paper examines the distributive effects of personal income taxation in Sweden, the United Kingdom, and the United States during the first half of the twentieth century. We estimate the evolution of marginal and average effective tax rates across the income distribution and calculate the corresponding indices of progressivity and redistribution. Our results show that redistribution through income taxation increased during the period with varying intensity and mechanisms. During the First World War, this was a joint effect of increases in the amount of revenue collected and progressivity. In contrast, during the Second World War, revenue increased again, but progressivity diminished.

Suggested Citation

  • Sara Torregrosa‐Hetland & Oriol Sabaté, 2026. "Income taxes and redistribution in the early twentieth century," Economic History Review, Economic History Society, vol. 79(2), pages 634-660, May.
    • Handle: RePEc:bla:ehsrev:v:79:y:2026:i:2:p:634-660
    DOI: 10.1111/ehr.70026
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    References listed on IDEAS

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    Cited by:

    1. Bengtsson, Erik & Molinder, Jakob & Prado, Svante, 2026. "Income Inequality and Structural Transformation: Evidence from Swedish Micro Data, 1870-1970," Lund Papers in Economic History 269, Lund University, Department of Economic History.

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