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The Evolution of Income Inequality During the Rise of the Swedish Welfare State1951 to 1973

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  • Anders Björklund
  • Mårten Palme

Abstract

We analyse the change in family gross income inequality between 1951 and 1973. We use two new samples of the Swedish population from 1951 and 1956 containing tax register data, and compare the results with those obtained from the Swedish Level of Living survey from 1967 and 1973. Gini coefficients, four different Generalised entropy measures as well as decile group shares of total income are calculated. We also do two different decompositions: one between different demographic groups and one between the male and female component of family income. Finally, we examine to what extent zero family income records really reflect low economic welfare by using interview data from the 1968 Swedish Level of Living Survey.

Suggested Citation

  • Anders Björklund & Mårten Palme, 2000. "The Evolution of Income Inequality During the Rise of the Swedish Welfare State1951 to 1973," Nordic Journal of Political Economy, Nordic Journal of Political Economy, vol. 26, pages 115-128.
    • Handle: RePEc:noj:journl:v:26:y:2000:p:115-128
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    References listed on IDEAS

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    1. Stephen P. Jenkins, 1999. "Analysis of income distributions," Stata Technical Bulletin, StataCorp LLC, vol. 8(48).
    2. Sen, Amartya, 1973. "On Economic Inequality," OUP Catalogue, Oxford University Press, number 9780198281931.
    3. Cowell, Frank A., 1989. "Sampling variance and decomposable inequality measures," Journal of Econometrics, Elsevier, vol. 42(1), pages 27-41, September.
    4. Atkinson, Anthony B., 1970. "On the measurement of inequality," Journal of Economic Theory, Elsevier, vol. 2(3), pages 244-263, September.
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    Cited by:

    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).
    2. 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.
    3. Tregenna, F., 2009. "The Relationship Between Unemployment and Earnings Inequality in South Africa," Cambridge Working Papers in Economics 0907, Faculty of Economics, University of Cambridge.

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    More about this item

    JEL classification:

    • D3 - Microeconomics - - Distribution
    • I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty
    • N3 - Economic History - - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy

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