Scandinavian Working Papers in Economics
HUI Working Papers,
HUI Research
No 39: Consumption and income inequality in Sweden: a different story
Sven-Olov Daunfeldt (), Stefan Fölster and Per Hortlund
Additional contact information
Sven-Olov Daunfeldt: The Ratio Institute (RATIO), Postal: P.O. Box 3203, SE-103 64 Stockholm, Sweden
Stefan Fölster: The Royal Institute of Technology and the Confederation of Swedish Enterprise, Postal: SE-114 82, Stockholm, Sweden
Per Hortlund: The Swedish Retail Institute (HUI), Postal: S-103 29 Stockholm, Sweden
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
30 pages, June 10, 2010
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