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Components of the evolution of income inequality in Sweden, 1990–2021

Author

Listed:
  • Arizo Karimi
  • Charlotte Lucke
  • Mårten Palme

Abstract

This paper documents how the inequality of household equivalent disposable income has changed in Sweden over the period 1990–2021. We find that income inequality has unambiguously increased. Measured by the Gini coefficient, inequality increased from around 0.19 to almost 0.3 by the end of 2020. We then analyse the backgrounds to this change by measuring the importance of changes in different components of the overall income distribution: the wage distribution; the distribution of hours of work; capital incomes; income differences between labour market participants and non‐participants; income redistribution through income taxes and benefits; and, finally, the effect of increased immigration to Sweden.

Suggested Citation

  • Arizo Karimi & Charlotte Lucke & Mårten Palme, 2024. "Components of the evolution of income inequality in Sweden, 1990–2021," Fiscal Studies, John Wiley & Sons, vol. 45(2), pages 187-204, June.
    • Handle: RePEc:wly:fistud:v:45:y:2024:i:2:p:187-204
    DOI: 10.1111/1475-5890.12367
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    References listed on IDEAS

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