Wealth Inequality in Sweden: What Can We Learn from Capitalized Income Tax Data?

58 Pages Posted: 4 May 2016

See all articles by Jacob Lundberg

Jacob Lundberg

Uppsala University

Daniel Waldenström

Uppsala University - Department of Economics; Research Institute of Industrial Economics (IFN)

Multiple version iconThere are 3 versions of this paper

Date Written: April 2016

Abstract

This paper presents new estimates of wealth inequality in Sweden during 2000-2012, linking wealth register data up to 2007 and individually capitalized wealth based on income and property tax registers for the period thereafter when a repeal of the wealth tax stopped the collection of individual wealth statistics. We find that wealth inequality increased after 2007 and that more unequal bank holdings and apartment ownership appear to be important drivers. We also evaluate the performance of the capitalization method by contrasting its estimates and their dispersion with observed stocks in register data up to 2007. The goodness-of-fit varies tremendously across assets and we conclude that although capitalized wealth estimates may well approximate overall inequality levels and trends, they are highly sensitive to assumptions and the quality of the underlying data sources.

Keywords: Capitalization method, Gini coefficient, great recession, Investment income method, Top wealth shares, wealth distribution

JEL Classification: D31, H2, N32

Suggested Citation

Lundberg, Jacob and Waldenström, Daniel, Wealth Inequality in Sweden: What Can We Learn from Capitalized Income Tax Data? (April 2016). CEPR Discussion Paper No. DP11246. Available at SSRN: https://ssrn.com/abstract=2774360

Jacob Lundberg (Contact Author)

Uppsala University ( email )

Box 513
Uppsala, 751 20
Sweden

Daniel Waldenström

Uppsala University - Department of Economics ( email )

Box 513
SE-75120 Uppsala
Sweden

HOME PAGE: http://www.uueconomics.se/danielw

Research Institute of Industrial Economics (IFN) ( email )

Box 55665
Grevgatan 34, 2nd floor
Stockholm, SE-102 15
Sweden

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