Income distribution and work incentives


Income distribution and work incentives

This paper summarizes the first three chapters in Income Distribution and Work Incentives published by the Danish Ministry of Finance in the summer of 2002.

Chapter one analyses the development in the distribution of disposable incomes in Denmark in the period 1983-2000 focusing on the latter part of the period, i.e. 1994-2000, with special attention paid to the development in capital incomes. This chapter also summarizes information on the so-called low-income group.

Chapter two shows the distributional effects of public revenue and expenditure including public services and indirect taxes.

Chapter three shows stylised examples of the development in family incomes in the period 1993-2003. Furthermore, the chapter analyses whether or not the chosen stylised family types are representative of real families. 

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