2018
DOI: 10.1093/ereh/hey032
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A Kuznets rise and a Piketty fall: income inequality in Finland, 1865–1934

Abstract: This study presents the new Gini coefficient and top income share series for Finland in the years 1865-1934 by utilizing Finnish tax statistics, which provide data on a poor country on the threshold of modern economic growth.Income inequality was relatively moderate in 1865, while famine (1867-68) decreased it further. Income inequality increased substantially during the late nineteenth century, then declined during WWI and its aftermath, followed by another increase in inequality in the late 1920s that was ha… Show more

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Cited by 3 publications
(5 citation statements)
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“…However, these results are parallel with the findings from other Scandinavian countries, especially from Norway for the late nineteenth century (Bull, 2005). Moreover, it is notable that in both of these countries, income inequalities were high and increased rapidly in the latter part of the twentieth century: thus, this could be one of the reasons for the high degree of social stratification (Roikonen & Heikkinen, 2018). Also, we argue that one of the main forces favouring homogamy was the overall social decline within agrarian society: it occurred in close connection with the disparity between the amount of available land and the number of people needing land, evident since the early nineteenth century.…”
Section: Discussionsupporting
confidence: 82%
See 1 more Smart Citation
“…However, these results are parallel with the findings from other Scandinavian countries, especially from Norway for the late nineteenth century (Bull, 2005). Moreover, it is notable that in both of these countries, income inequalities were high and increased rapidly in the latter part of the twentieth century: thus, this could be one of the reasons for the high degree of social stratification (Roikonen & Heikkinen, 2018). Also, we argue that one of the main forces favouring homogamy was the overall social decline within agrarian society: it occurred in close connection with the disparity between the amount of available land and the number of people needing land, evident since the early nineteenth century.…”
Section: Discussionsupporting
confidence: 82%
“…6. The incomes of the freeholders are probably underestimated because of the relatively large deduction system (Roikonen & Heikkinen, 2018). 7.…”
Section: Notesmentioning
confidence: 99%
“…5 . Sources : Finland, 1865-1910(Roikonen & Heikkinen 2018), Finland, 1920(Jäntti et al 2010), Germany 1876-1880, USA 1870-1910(Lindert & Williamson 2016, other (WID database). 1965 1970 1975 1980 1985 1990 1995 2000 2005 Note: Swedish and Finnish data include capital gains.…”
Section: Gini Coefficientsmentioning
confidence: 99%
“…Another approach to study the prevalence of poverty in historical periods is to rely on the 'national accounts' method, in which poverty estimates are derived from economic historians' reconstructions of historical prosperity and inequality (Hasell & Roser 2019). In a recent paper by Roikonen and Heikkinen (2018) income inequality in Fin-land for the years 1865-1934 was estimated based on Finnish tax statistics. This case study takes use of the underlying estimated income distribution of Finland in the 19 th and 20 th century reconstructed within the framework of the above-mentioned paper.…”
Section: Capable Longevitymentioning
confidence: 99%
“…Although the slight heterogeneity of the data causes some problems, we believe that these estimates of income distributions are sufficiently valid to serve as basis for reconstructing historical poverty rates in Finland. A detailed description of the methodology and data sources used can be found in Roikonen & Heikkinen, 2018. In addition to valid information about distributions of income over time, a credible measure of poverty also requires setting a plausible poverty line, defined as the minimum level of income required to maintain basic living standards. For reconstructing poverty in Finland to estimate capable longevity, we decided to use needs-based poverty lines, focusing on indigence and basic human needs.…”
Section: Capable Longevitymentioning
confidence: 99%