Nationaløkonomisk tidsskrift,
Nationaløkonomisk Forening

Abstract: The intention of this paper is to give both a constructive and critical review of studies of personal income distribution in Denmark with a focus on methodological topics. Three main questions always arise in such studies: (1) which income concept, (2) which time period – spanning from a one (year) period to a life cycle period, and (3) which unit should be considered. When reviewing studies of personal income distribution in Denmark, which have mainly been produced by two institutions, namely the Council of Economic Advisers and the Ministry of Finance, these three methodological topics are of primary interest. In this review it is furthermore especially the different implications of studies based on an annual versus a life cycle perspective that are in the forefront. It is shown that the redistributive effects of various tax and transfer instruments can be very different in an annual versus a life cycle perspective.

Keywords: Personal income; income distribution

JEL-codes: A10

Language: English

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