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What Happened to the Incomes of the Rich during the Great Levelling? Evidence from Swedish Individual-Level Data, 1909–1950

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  • Bengtsson, Erik
  • Molinder, Jakob

Abstract

We use individual-level income data from archived taxation lists to study top-income earners in Sweden from 1909 to 1950. Using information on 21,055 individual taxpayers in two elite areas in greater Stockholm, we show that top incomes fell in real terms over this period, at a stable pace without obvious connection to the Great Depression or the world wars. The peak of inequality was related to the early stages of a globalized economy with Schumpeterian entrepreneurial profits; the decline was related to sharpened competition, driving down profits, as well as increased regulation, expansion of education, and eroded position of professionals.

Suggested Citation

  • Bengtsson, Erik & Molinder, Jakob, 2025. "What Happened to the Incomes of the Rich during the Great Levelling? Evidence from Swedish Individual-Level Data, 1909–1950," The Journal of Economic History, Cambridge University Press, vol. 85(2), pages 411-441, June.
    • Handle: RePEc:cup:jechis:v:85:y:2025:i:2:p:411-441_4
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    References listed on IDEAS

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    1. Roine, Jesper & Waldenstrom, Daniel, 2008. "The evolution of top incomes in an egalitarian society: Sweden, 1903-2004," Journal of Public Economics, Elsevier, vol. 92(1-2), pages 366-387, February.
    2. Anthony Atkinson & Thomas Piketty, 2010. "Top Incomes : A Global Perspective," PSE-Ecole d'économie de Paris (Postprint) halshs-00754875, HAL.
    3. Karlsson, Tobias & Lundh, Christer, 2015. "The Gothenburg Population Panel 1915-1943: GOPP Version 6.0," Göteborg Papers in Economic History 18, University of Gothenburg, Unit for Economic History.
    4. Schön, Lennart & Krantz, Olle, 2015. "New Swedish Historical National Accounts since the 16th Century in Constant and Current Prices," Lund Papers in Economic History 140, Lund University, Department of Economic History.
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    1. Bengtsson, Erik & Molinder, Jakob, 2024. "Incomes and income inequality in Stockholm, 1870–1970: Evidence from micro data," Explorations in Economic History, Elsevier, vol. 92(C).

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    More about this item

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • N14 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - Europe: 1913-
    • N34 - Economic History - - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy - - - Europe: 1913-

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