Inequality and dynamics of earnings and disposable income in Denmark 1987–2016

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Standard

Inequality and dynamics of earnings and disposable income in Denmark 1987–2016. / Leth-Petersen, Søren; Sæverud, Johan.

In: Quantitative Economics, Vol. 13, No. 4, 11.2022, p. 1493-1526.

Research output: Contribution to journal › Journal article › Research › peer-review

Harvard

Leth-Petersen, S & Sæverud, J 2022, 'Inequality and dynamics of earnings and disposable income in Denmark 1987–2016', Quantitative Economics, vol. 13, no. 4, pp. 1493-1526. https://doi.org/10.3982/QE1843

APA

Leth-Petersen, S., & Sæverud, J. (2022). Inequality and dynamics of earnings and disposable income in Denmark 1987–2016. Quantitative Economics, 13(4), 1493-1526. https://doi.org/10.3982/QE1843

Vancouver

Leth-Petersen S, Sæverud J. Inequality and dynamics of earnings and disposable income in Denmark 1987–2016. Quantitative Economics. 2022 Nov;13(4):1493-1526. https://doi.org/10.3982/QE1843

Author

Leth-Petersen, Søren ; Sæverud, Johan. / Inequality and dynamics of earnings and disposable income in Denmark 1987–2016. In: Quantitative Economics. 2022 ; Vol. 13, No. 4. pp. 1493-1526.

Bibtex

@article{ebc1510ba4a54338b0da20adba08da29,
title = "Inequality and dynamics of earnings and disposable income in Denmark 1987–2016",
abstract = "We document facts about earnings and disposable income inequality and growth in Denmark in the period 1987–2016. During this period, the distribution of log earnings growth exhibits skewness that varies with the business cycle and has strong excess kurtosis. Denmark has a progressive income tax system with a high level of taxes and a relatively generous and heavily subsidized unemployment insurance system. Consequently, the dispersion of log disposable income growth is much smaller than for earnings, and the distribution exhibits very limited skewness and much reduced excess kurtosis. These results emphasize the importance of distinguishing between earnings and disposable income when modeling income dynamics, and they suggest that the Danish welfare state plays an important role in reducing the impact of earnings fluctuations on disposable income.",
author = "S{\o}ren Leth-Petersen and Johan S{\ae}verud",
year = "2022",
month = nov,
doi = "10.3982/QE1843",
language = "English",
volume = "13",
pages = "1493--1526",
journal = "Quantitative Economics",
issn = "1759-7323",
publisher = "The Econometric Society",
number = "4",

}

RIS

TY - JOUR

T1 - Inequality and dynamics of earnings and disposable income in Denmark 1987–2016

AU - Leth-Petersen, Søren

AU - Sæverud, Johan

PY - 2022/11

Y1 - 2022/11

N2 - We document facts about earnings and disposable income inequality and growth in Denmark in the period 1987–2016. During this period, the distribution of log earnings growth exhibits skewness that varies with the business cycle and has strong excess kurtosis. Denmark has a progressive income tax system with a high level of taxes and a relatively generous and heavily subsidized unemployment insurance system. Consequently, the dispersion of log disposable income growth is much smaller than for earnings, and the distribution exhibits very limited skewness and much reduced excess kurtosis. These results emphasize the importance of distinguishing between earnings and disposable income when modeling income dynamics, and they suggest that the Danish welfare state plays an important role in reducing the impact of earnings fluctuations on disposable income.

AB - We document facts about earnings and disposable income inequality and growth in Denmark in the period 1987–2016. During this period, the distribution of log earnings growth exhibits skewness that varies with the business cycle and has strong excess kurtosis. Denmark has a progressive income tax system with a high level of taxes and a relatively generous and heavily subsidized unemployment insurance system. Consequently, the dispersion of log disposable income growth is much smaller than for earnings, and the distribution exhibits very limited skewness and much reduced excess kurtosis. These results emphasize the importance of distinguishing between earnings and disposable income when modeling income dynamics, and they suggest that the Danish welfare state plays an important role in reducing the impact of earnings fluctuations on disposable income.

U2 - 10.3982/QE1843

DO - 10.3982/QE1843

M3 - Journal article

VL - 13

SP - 1493

EP - 1526

JO - Quantitative Economics

JF - Quantitative Economics

SN - 1759-7323

IS - 4

ER -

ID: 336458831