IDEAS home Printed from https://ideas.repec.org/a/bla/revinw/v39y1993i4p377-386.html
   My bibliography  Save this article

A Comparison Between Actual Distributions Of Annual And Lifetime Income: Sweden 1951–89

Author

Listed:
  • Anders Björklund

Abstract

This paper uses register data on tax assessed income from 1951 to 1989 for a representative sample of Swedish men in order to compare the distributions of annual income and “lifetime” income. It is found that the dispersion of lifetime income is around 35 to 40 percent lower than typical cross‐sections of annual income. It is income up to around 30 years of age that mainly explains this discrepancy in the magnitude of dispersions. From the age of 30 until 65 years the correlations between annual and lifetime income are quite high and the dispersion of annual income is not very much higher than the dispersion of lifetime income. An analysis of the evolution of income mobility shows that there is a slight tendency to rising mobility over time. This finding implies that the common approach to study the development of income distribution by using only annual income can be misleading.

Suggested Citation

  • Anders Björklund, 1993. "A Comparison Between Actual Distributions Of Annual And Lifetime Income: Sweden 1951–89," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 39(4), pages 377-386, December.
    • Handle: RePEc:bla:revinw:v:39:y:1993:i:4:p:377-386
    DOI: 10.1111/j.1475-4991.1993.tb00468.x
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/j.1475-4991.1993.tb00468.x
    Download Restriction: no
    File URL: https://libkey.io/10.1111/j.1475-4991.1993.tb00468.x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Stiglitz, Joseph E. & Yun, Jungyoll, 2005. "Integration of unemployment insurance with retirement insurance," Journal of Public Economics, Elsevier, vol. 89(11-12), pages 2037-2067, December.
    2. Riphahn, Regina T. & Schnitzlein, Daniel D., 2016. "Wage mobility in East and West Germany," Labour Economics, Elsevier, vol. 39(C), pages 11-34.
    3. Fatih Guvenen & Greg Kaplan & Jae Song & Justin Weidner, 2017. "Lifetime Incomes in the United States over Six Decades," NBER Working Papers 23371, National Bureau of Economic Research, Inc.
    4. Grawe, Nathan D., 2006. "Lifecycle bias in estimates of intergenerational earnings persistence," Labour Economics, Elsevier, vol. 13(5), pages 551-570, October.
    5. David Brady & Marco Giesselmann & Ulrich Kohler & Anke Radenacker, 2018. "How to measure and proxy permanent income: evidence from Germany and the U.S," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 16(3), pages 321-345, September.
    6. Garnero, Andrea & Hijzen, Alexander & Martin, Sébastien, 2019. "More unequal, but more mobile? Earnings inequality and mobility in OECD countries," Labour Economics, Elsevier, vol. 56(C), pages 26-35.
    7. Timm Bönke & Astrid Harnack-Eber & Holger Lüthen, 2024. "The Broken Elevator: Declining Absolute Mobility of Living Standards in Germany," Discussion Papers of DIW Berlin 2068, DIW Berlin, German Institute for Economic Research.
    8. Mike Brewer & Monica Costa Dias & Jonathan Shaw, 2012. "Lifetime inequality and redistribution," IFS Working Papers W12/23, Institute for Fiscal Studies.
    9. Sadegh Eshaghnia & James J. Heckman & Rasmus Landersø & Rafeh Qureshi, 2022. "Intergenerational Transmission of Family Influence," NBER Working Papers 30412, National Bureau of Economic Research, Inc.
    10. Eisenhauer, Philipp & Pfeiffer, Friedhelm, 2008. "Assessing intergenerational earnings persistence among German workers," Zeitschrift für ArbeitsmarktForschung - Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 41(2/3), pages 119-137.
    11. Cathal O’Donoghue, 2001. "Redistribution over the Lifetime in the Irish Tax-Benefit System - An Application of a Prototype Dynamic Microsimulation Model for Ireland," The Economic and Social Review, Economic and Social Studies, vol. 32(3), pages 191-216.
    12. Martin Trombetta, 2022. "Los efectos distributivos de la movilidad de ingresos: evidencia para América Latina," Asociación Argentina de Economía Política: Working Papers 4604, Asociación Argentina de Economía Política.
    13. Martín Trombetta, 2023. "The distributional implications of short-term income mobility: evidence for Latin America," Working Papers 241, Red Nacional de Investigadores en Economía (RedNIE).
    14. Koerselman, Kristian & Uusitalo, Roope, 2014. "The risk and return of human capital investments," Labour Economics, Elsevier, vol. 30(C), pages 154-163.
    15. Glaubitz, Rick & Harnack-Eber, Astrid & Wetter, Miriam, 2022. "The gender gap in lifetime earnings: The role of parenthood," Discussion Papers 2022/3, Free University Berlin, School of Business & Economics.
    16. Anders Bohlmark & Matthew J. Lindquist, 2006. "Life-Cycle Variations in the Association between Current and Lifetime Income: Replication and Extension for Sweden," Journal of Labor Economics, University of Chicago Press, vol. 24(4), pages 879-900, October.
    17. John Creedy, 1994. "Statics and Dynamics of Income Distribution: An Introductory Survey," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 27(4), pages 51-71, October.
    18. Rick Glaubitz & Astrid Harnack-Eber & Miriam Wetter, 2022. "The Gender Gap in Lifetime Earnings: The Role of Parenthood," Discussion Papers of DIW Berlin 2001, DIW Berlin, German Institute for Economic Research.
    19. Sheldon Danziger & Markus J ntti, 1999. "Income Poverty in Advanced Countries," LIS Working papers 193, LIS Cross-National Data Center in Luxembourg.
    20. Hope Bodenschatz & Gerald Eric Daniels Jr. & Jeffrey P. Thompson, 2023. "Decomposing Lifetime-Earnings Differences between White, Black, and Hispanic Families," Working Papers 23-14, Federal Reserve Bank of Boston.
    21. Moshe Justman & Hadas Stiassnie, 2021. "Inequality in Lifetime Earnings, 1986-2012," Working Papers 579, ECINEQ, Society for the Study of Economic Inequality.
    22. Jorge Roca, 2014. "Wage cyclicality: Evidence from Spain using social security data," SERIEs: Journal of the Spanish Economic Association, Springer;Spanish Economic Association, vol. 5(2), pages 173-195, August.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:revinw:v:39:y:1993:i:4:p:377-386. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/iariwea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.