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Changing Inequalities and Societal Impacts in Rich CountriesThirty Countries' Experiences$
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Brian Nolan, Wiemer Salverda, Daniele Checchi, Ive Marx, Abigail McKnight, István György Tóth, and Herman G. van de Werfhorst

Print publication date: 2014

Print ISBN-13: 9780199687428

Published to Oxford Scholarship Online: April 2014

DOI: 10.1093/acprof:oso/9780199687428.001.0001

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Sources and Impact of Rising Inequality in Denmark

Sources and Impact of Rising Inequality in Denmark

(p.196) Chapter 9 Sources and Impact of Rising Inequality in Denmark
Changing Inequalities and Societal Impacts in Rich Countries

Ioana Neamtu

Niels Westergaard-Nielsen

Oxford University Press

This chapter finds that income inequality in Denmark has increased in the past 30 years, mainly not only due to the abundance of students and young individuals taking on low-paid jobs, but also due to the higher labour market participation of women in full-time jobs. Similarly, we find that increasing returns to education and increasing levels of education for both men and women have an increasing effect on income inequality. Last but not least, we find that family formation in the modern society is in itself a driver of inequality. Moreover, we find that the changes in deprivation, crime rates, poverty risks, happiness, trust, and other more qualitative variables do not unanimously reflect increasing income inequality, probably because inequality has increased within almost all groups in the society. The recent increase in inequality is partly a product of changes in the tax system.

Keywords:   income inequality, low-wage jobs, returns to education, family formation, Denmark, taxation, crime, poverty, happiness, female employment

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