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Was the Burden of the Deep Swedish Recession Equally Shared?

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  • Björn Gustafsson
  • Edward Palmer

Abstract

The development of income inequality in Sweden up to 1998 is described and analyzed using yearly data focusing on the 1990s when average income fell rapidly and unemployment sky rocketed. Inequality in equivalent disposable income increased during the 1990s as during most of the 1980s. Decomposing total inequality by population groups and studying the earnings of full–time workers shows that while many groups experienced drops in income during the 1990s, some large groups did not. Examples of the latter are pensioners and full–time workers. Young adults and recent immigrants are examples of the former. Decomposing the Gini–coefficient by income source indicates that forces leading to increased inequality during the 1990s differed from those at play during the 1980s.

Suggested Citation

  • Björn Gustafsson & Edward Palmer, 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 537-560, December.
    • Handle: RePEc:bla:revinw:v:48:y:2002:i:4:p:537-560
    DOI: 10.1111/1475-4991.00067
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    Cited by:

    1. Hansson, Åsa, 2004. "Taxpayers Responsiveness to Tax Rate Changes and Implications for the Cost of Taxation," Working Papers 2004:5, Lund University, Department of Economics.
    2. Gustavsson, Magnus, 2004. "Changes in Educational Wage Premiums in Sweden: 1992-2001," Working Paper Series 2004:10, Uppsala University, Department of Economics.
    3. Gustafsson, Bjorn & Nivorozhkina, Ludmila, 2005. "How and why transition made income inequality increase in urban Russia: A local study," Journal of Comparative Economics, Elsevier, vol. 33(4), pages 772-787, December.
    4. Kraen Blume & Björn Gustafsson & Peder J. Pedersen & Mette Verner, 2003. "A Tale of Two Countries: Poverty among Immigrants in Denmark and Sweden since 1984," WIDER Working Paper Series DP2003-36, World Institute for Development Economic Research (UNU-WIDER).
    5. Åsa Hansson, 2007. "Taxpayers' responsiveness to tax rate changes and implications for the cost of taxation in Sweden," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 14(5), pages 563-582, October.
    6. Gustafsson, Björn Anders & Jansson, Birgitta, 2007. "Top Incomes in Sweden during Three-Quarters of a Century: A Micro Data Approach," IZA Discussion Papers 2672, Institute of Labor Economics (IZA).
    7. Bjarne Jansson & Jahangir Khan, 2006. "Redistributive Outcome of Sickness Insurance - An Empirical Study of Social Insurance Institutions," LIS Working papers 442, LIS Cross-National Data Center in Luxembourg.

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