HUI Working Papers, HUI Research
Consumption and income inequality in Sweden: a different story
(), Stefan Fölster and Per Hortlund
Abstract: This paper analyzes consumption- and income inequality
trends in Sweden during the period 1988-2005. Similar studies for the US
have found that consumption inequality has increased much less than income
inequality in recent decades. Results in this paper indicate that
consumption inequality actually decreased in Sweden in spite of
considerable overall increase in income inequality. The apparent
contradiction can mainly be explained by increased saving and life cycle
redistribution among high-income households.
Keywords: Income distribution; earnings; consumption; equality; (follow links to similar papers)
JEL-Codes: D12; D31; D63; (follow links to similar papers)
30 pages, June 10, 2010
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