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Inequality in Denmark through the Looking Glass

Author

Listed:
  • Orsetta Causa

    (OECD)

  • Mikkel Hermansen

    (OECD)

  • Nicolas Ruiz

    (OECD)

  • Caroline Klein

    (OECD)

  • Zuzana Smidova

    (OECD)

Abstract

This paper delivers a broad assessment of income inequality in Denmark. As a necessary preamble to provide a basis for discussion, we start by contrasting Danish official inequality measures with those gathered by the OECD in an international context. We show that differences between these two sources are fully explained by differences in methodological choices. We then go beyond synthetic measures of inequality to deliver a granular assessment of income distribution and of the distributional impact of taxes and transfers; and on this basis we compare Denmark to other OECD countries. This approach is then used to quantify the distributional impact of some growth-enhancing reforms undertaken or recommended for Denmark, based on empirical evidence across OECD countries. Finally, we take a forward looking stance by discussing global forces shaping the rise in inequality, in particular skill-biased technological change and deliver a tentative scenario for Denmark in the wider OECD context. Les inégalités au Danemark : mesures, évolutions et impacts de réformes récentes Ce document de travail fournit une évaluation générale de l'inégalité de revenu au Danemark. En préambule afin de fournir une base aux discussions, ce papier commence par une comparaison entre les mesures d'inégalité officielles danoises et celles recueillies par l'OCDE dans un contexte international. Il est montré que les différences entre ces deux sources sont expliquées principalement par des différences de choix méthodologiques. Ensuite, au-delà des mesures synthétiques de l'inégalité, le document fournit une évaluation granulaire des inégalités et de l'impact redistributif des impôts et des transferts au Danemark, dans une perspective internationale. Cette approche est ensuite utilisée pour quantifier l'impact redistributif de certaines réformes pro-croissance. Enfin, les potentielles évolutions futures des inégalités au Danemark sont discutées, au regard des récentes tendances mondiales, en particulier le changement technologique et son influence sur la demande de compétences.

Suggested Citation

  • Orsetta Causa & Mikkel Hermansen & Nicolas Ruiz & Caroline Klein & Zuzana Smidova, 2016. "Inequality in Denmark through the Looking Glass," OECD Economics Department Working Papers 1341, OECD Publishing.
    • Handle: RePEc:oec:ecoaaa:1341-en
    DOI: 10.1787/5jln041vm6tg-en
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    References listed on IDEAS

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    2. Orsetta Causa & Mikkel Hermansen & Nicolas Ruiz, 2016. "The Distributional Impact of Structural Reforms," OECD Economics Department Working Papers 1342, OECD Publishing.
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    Cited by:

    1. Kai Ruggeri & Amma Panin & Milica Vdovic & Bojana Većkalov & Nazeer Abdul-Salaam & Jascha Achterberg & Carla Akil & Jolly Amatya & Kanchan Amatya & Thomas Lind Andersen & Sibele D. Aquino & Arjoon Aru, 2022. "The globalizability of temporal discounting," Nature Human Behaviour, Nature, vol. 6(10), pages 1386-1397, October.
    2. Kai Ruggeri & Amma Panin & Milica Vdovic & Bojana Većkalov & Nazeer Abdul-Salaam & Jascha Achterberg & Carla Akil & Jolly Amatya & Kanchan Amatya & Thomas Lind Andersen & Sibele D. Aquino & Arjoon Aru, 2022. "The globalizability of temporal discounting," Nature Human Behaviour, Nature, vol. 6(10), pages 1386-1397, October.
      • Kai Ruggeri & Amma Panin & Milica Vdovic & Bojana Većkalov & Nazeer Abdul-Salaam & Jascha Achterberg & Carla Akil & Jolly Amatya & Kanchan Amatya & Thomas Lind Andersen & Sibele D Aquino & Arjoon Arun, 2022. "The globalizability of temporal discounting," Post-Print halshs-03903193, HAL.
    3. Chih-Mei Luo, 2020. "Answering economic inequality other than with populism and protectionism: the Danish formula of inclusive capitalism," Asia Europe Journal, Springer, vol. 18(1), pages 139-155, March.

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    More about this item

    Keywords

    income distribution; inequality; structural policies;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • E61 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Policy Objectives; Policy Designs and Consistency; Policy Coordination
    • I23 - Health, Education, and Welfare - - Education - - - Higher Education; Research Institutions
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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