Cambridge Journal of Economics Advance Access originally published online on June 11, 2008
Cambridge Journal of Economics 2008 32(6):963-976; doi:10.1093/cje/ben024
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Top incomes in Sweden over three-quarters of a century: a micro data approach
* University of Göteborg, Sweden
Address for correspondence: Bjorn Gustafsson, Department of Social Work, University of Göteborg, PO Box 720, SE 405 30 Göteborg, Sweden; email: bjorn.gustafsson{at}socwork.gu.se or birgitta.jansson{at}socwork.gu.se
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, tax reforms and the labour market change of top wages increasing more rapidly than others.
Key Words: Income distribution Sweden Tax reform
JEL classifications: D31, J31, N34
Manuscript received February 26, 2007; final version received December 3, 2007.