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Top Incomes in Sweden during Three-Quarters of a Century: A Micro Data Approach

  • Gustafsson, Björn Anders

    ()

    (University of Gothenburg)

  • Jansson, Birgitta

    ()

    (University of Gothenburg)

Registered author(s):

    This paper aims to throw light on the development of top incomes in Sweden as well as the causes for change. Using household income data we show that since the first half of the 1980s, real income at the top of the distribution has developed more favourably than for other groups. This contrasts with the changes which occurred prior to the 1980s. Reasons for the rise in the top income share are several: the development of stock prices, the tax reform which made income taxes not progressive at the top of the scale, and the labour market change of top wages increasing more rapidly than others.

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    File URL: http://ftp.iza.org/dp2672.pdf
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    Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 2672.

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    Length: 32 pages
    Date of creation: Mar 2007
    Date of revision:
    Publication status: published in: Cambridge Journal of Economics, 2008, 32 (6), 963-976
    Handle: RePEc:iza:izadps:dp2672
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    1. Anthony B. Atkinson, 2005. "Comparing the Distribution of Top Incomes Across Countries," Journal of the European Economic Association, MIT Press, vol. 3(2-3), pages 393-401, 04/05.
    2. Emmanuel Saez, 2005. "Top Incomes in the United States and Canada Over the Twentieth Century," Journal of the European Economic Association, MIT Press, vol. 3(2-3), pages 402-411, 04/05.
    3. A.B. Atkinson & Andrew Leigh, 2006. "The Distribution of Top Incomes in Australia," CEPR Discussion Papers 514, Centre for Economic Policy Research, Research School of Economics, Australian National University.
    4. Gustafsson, Bjorn & Palmer, Edward, 2002. "Was the Burden of the Deep Swedish Recession Equally Shared?," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 48(4), pages 537-60, December.
    5. Simon Kuznets, 1950. "Shares of Upper Income Groups in Income and Savings," NBER Books, National Bureau of Economic Research, Inc, number kuzn50-1, August.
    6. Anthony B. Atkinson & Wiemer Salverda, 2005. "Top Incomes In The Netherlands And The United Kingdom Over The 20th Century," Journal of the European Economic Association, MIT Press, vol. 3(4), pages 883-913, 06.
    7. Alvaredo, Facundo & Saez, Emmanuel, 2006. "Income and Wealth Concentration in Spain in a Historical and Fiscal Perspective," CEPR Discussion Papers 5836, C.E.P.R. Discussion Papers.
    8. Thomas Piketty, 2005. "Top Income Shares in the Long Run: An Overview," Journal of the European Economic Association, MIT Press, vol. 3(2-3), pages 382-392, 04/05.
    9. Albrecht, James & Björklund, Anders & Vroman, Susan, 2001. "Is There a Glass Ceiling in Sweden?," IZA Discussion Papers 282, Institute for the Study of Labor (IZA).
    10. Roine, Jesper & Waldenström, Daniel, 2005. "Top Incomes in Sweden over the Twentieth Century," SSE/EFI Working Paper Series in Economics and Finance 602, Stockholm School of Economics.
    11. Fabien Dell, 2005. "Top Incomes in Germany and Switzerland Over the Twentieth Century," Journal of the European Economic Association, MIT Press, vol. 3(2-3), pages 412-421, 04/05.
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