Curious to know what @brankomilan.bsky.social & @marcoranaldi.bsky.social think of our interpretation for the Nordics... in any case, it is in my view paramount to see more studies focusing on inequality in income composition! @elisapalagi.bsky.social

Section 4.1 focuses on DIT: "it emerges that the dual income tax (DIT) reforms in the Nordic countries in the early 1990s contributed to important shifts in the concentration of capital incomes across the income distribution and hence to rapid changes in the degree of income composition inequality".

"We show that income composition ineq has not always been high in the Nordics, and that current high levels of heterogeneity in factor income shares in Ranaldi & Milanovic (2021) are associated to recent taxation reforms." doi.org/10.1515/beje... (3/n)

"We show that, for all Nordic countries, a shift in capital incomes toward the top since the early 1990s causes rising heterogeneity in individuals’ factor income shares. To explain this result, we highlight the role of dual taxation systems." doi.org/10.1515/beje... (2/n)