Scandinavian Working Papers in Economics
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No 39:
Consumption and income inequality in Sweden: a different story

Sven-Olov Daunfeldt (), 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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