Still the Lands of Equality? On the Heterogeneity of Individual Factor Income Shares in the Nordics

Iacono, Roberto; Palagi, Elisa

doi:10.2139/ssrn.3805685

Cited by 6 publications

(9 citation statements)

References 29 publications

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“…Fochesato and Bowles (2015) similarly argue that "Nordic exceptionalism" is not due to exceptional equality in wealth, but to high social mobility and low inequality of earnings. Iacono and Palagi (2020) have documented the recent rise in compositional inequality in the Nordic countries, and claim that this was helped by the emergence of Dual Income Tax (DIT) reforms in the early 1990s, characterized by a flat tax on capital incomes (which is considerably lower than the tax rate on labor incomes). Additionally, both Sweden (in 2004) and Norway (in 2014) have abolished taxation of inheritance.…”

Section: Much Higher Concentration Of Capital Income Among Nordic Countries Canmentioning

confidence: 99%

Capitalist systems and income inequality

Ranaldi

Milanović

2022

Journal of Comparative Economics

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The paper investigates the relationship between capitalism systems and their levels of income and compositional inequality (how the composition of income between capital and labor varies along income distribution). Capitalism may be seen to range between Classical Capitalism, where the rich have only capital income, and the rest have only labor income, and Liberal Capitalism, where many people receive both capital and labor incomes. Using a new methodology and data from 47 countries over the past 25 years, we show that higher compositional inequality is associated with higher inter-personal inequality. Nordic countries are exceptional because they combine high compositional inequality with low inter-personal inequality. We speculate on the emergence of homoploutic societies where income composition may be the same for all, but Gini inequality nonetheless high, and introduce a new taxonomy of capitalist societies.

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Section: Much Higher Concentration Of Capital Income Among Nordic Countries Canmentioning

confidence: 99%

Capitalist systems and income inequality

Ranaldi

Milanović

2022

Journal of Comparative Economics

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“…The 1990s saw a range of tax reforms in the Nordic region. The introduction of dualincome taxation, lowering the degree of progressivity in capital income taxation, the reductions in top marginal tax rates, and the general lowering of capital taxation in the Nordic countries -from between 50-60 per cent to between 20-30 per cent (2020)resulted in an increasing accumulation of capital incomes towards the top of the income distribution (Iacono & Palagi, 2020). The fact that the rich have become richer has been further spurred by inheritance tax being abolished (in Sweden and Norway), real estate tax being repealed (in Sweden, although it has been retained in the other Nordic countries), and corporate tax being reduced to a level far below the postwar period.…”

Section: Class and The Nordic Countriesmentioning

confidence: 99%

Introduction: Class in/and the media: On the importance of class in media and communication studies

2021

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Social class is one of the most enduring concepts in the social sciences and is associated with many of the key themes and topics across multiple disciplines. Thus, there are many uses to which the concept of social class in media and communication can be put. The ambition of this special issue is to offer a glimpse into the heterogeneity of its uses in the field. While attuned differently in relation to the various approaches and definitions of class, the eight contributions to this special issue collectively focus on the relationship between media and class. One of the ambitions of this special issue is to report on some of the current Nordic scholarship in this growing field of research and to highlight the particularities of the relationship between class, inequality and media in this region. While the special issue also includes contributions from other regions, the main focus is on social class in the Nordic countries.This introductory article begins with a discussion on the concept of social class and its analytical relevance in the contemporary social landscape. We detail the relationship between media and class as manifested in a growing body of research, followed by a brief presentation of the individual contributions to this special issue. Finally, we identify the road ahead and potential research areas for scholars of media and communication concerned about class and social inequality in the twenty-first century. Class: A key concept in an increasingly unequal worldDespite its long history of playing a key role in the social sciences, the concept of social class is a contested term. First, because of the definitional uncertainty that stems from a range of academic traditions applying the concept in different ways to different objects of study. Second, due to changes in the sphere of production, social structure, and in the lifeworlds of citizens in many parts of the world, which has made it more difficult to ascertain the empirical reality of social class.

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“…The second type is heterogeneity in the distribution of capital and labor incomes across the income distribution. Recent studies have shown that, globally, poor individuals derive most of their income from labor, whilst rich individuals derive most of their income from capital (Ranaldi and Milanovic, 2022, Iacono and Palagi, 2022b, Iacono and Ranaldi, 2022. We call this type of heterogeneity endowment heterogeneity.…”

Section: Introductionmentioning

confidence: 99%

“…As for behavioral heterogeneity, seeDynan et al (2004),Saez and Zucman (2016),Jappelli and Pistaferri (2014),Bunn et al (2018) among others, whilst for endowment heterogeneity, seeRanaldi and Milanovic (2022),Iacono and Ranaldi (2022),Iacono and Palagi (2022b),Petrova and Ranaldi (2021),Berman and Milanovic (2020).…”

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confidence: 99%

Heterogeneity in Macroeconomics: The Compositional Inequality Perspective

Ranaldi¹,

Palagi²

2022

Preprint

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This work presents a framework to jointly study individuals’ heterogeneity in terms of their capital and labor endowments (endowment heterogeneity) and of their saving and consumption behaviors (behavioral heterogeneity), from an empirical perspective. By adopting a newly developed synthetic measure of compositional inequality, this work classifies more than 20 economies across over two decades on the basis of their heterogeneity characteristics. Modern economies are far from being characterized by agents with same propensities to save and consume and same endowments (Representative Agent systems), or by the existence of rich capital-abundant savers and poor hand-to-mouth consumers (Kaldorian systems). Our framework and results are discussed in light of the heterogeneity assumptions underlying several types of macroeconomic models with heterogeneous agents (Kaldorian, TANK & HANK, OLG, and ABM models). A negative relationship between behavioral heterogeneity and the economy’s saving rate is also documented. (Stone Center on Socio-Economic Inequality Working Paper)

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Still the Lands of Equality? On the Heterogeneity of Individual Factor Income Shares in the Nordics

Cited by 6 publications

References 29 publications

Capitalist systems and income inequality

Capitalist systems and income inequality

Introduction: Class in/and the media: On the importance of class in media and communication studies

Heterogeneity in Macroeconomics: The Compositional Inequality Perspective

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