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Income dynamics and tax progressivity

Awarded: NOK 0.25 mill.

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2007 - 2009

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This project discusses important issues when interpreting recent developments in Norwegian income distributions and income inequality: If increased income inequality over time is associated with increased income mobility, it is possible that income inequ ality measured over several years has fallen. Hence, longer period inequality may be lower, and welfare might be higher, despite the rise in annual income inequality. We provide empirical estimates of the different components involved.

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