| dc.description.abstract | We estimate the complete income distribution in Norway for 1892, 1906, 1913 and 1929.
Compared to previous research, we benefit from better data and more advanced estimation
techniques. Our thesis identifies several data weaknesses which have caused bias in previous
studies. Much of the data previously used does not distinguish between individual taxpayers
and impersonal entities such as stock companies and banks. Another weakness is that before
1921, dividends were not included in the income data. For 1929, the data allows us to create
local-level estimates for each Norwegian municipality.
We find that the pre-tax, pre-transfers Gini index is stable for the years we analyse, starting at
52 percent in 1892 and ending at 54 percent in 1929. The top 1% income share before taxes
and transfers falls over time, declining from 19 percent in 1892 to 12 percent in 1929. We find
that shocks to wealth might play a role in this development. Our results differ significantly
from those of previous studies. First, we find a Gini index lower than Aaberge, Atkinson and
Modalsli (2016). Second, we find lower top incomes and a different development over time
than Aaberge, Atkinson and Modalsli (2013).
Our results suggest that Norway was already among the most egalitarian countries in Western
Europe between 1892 and 1929 in terms of income. However, our estimates are sensitive to
total income and to the estimation of stock dividends. Historical estimates from other countries
are likely to be sensitive too, leaving a considerable risk of error when comparing. | nb_NO |
