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The Relationship between Inequality and Growth in Denmark - An Empirical Analysis af Morten Aastrup and Peter Toubro-Christensen

Abstract
This paper investigates the relationship between inequality and economic activity in Denmark through the second half of the 20th century. We find that neither the level of income nor the development in growth rates have any significant effect on changes in inequality. The short-term dynamics of income inequality has mainly been driven by inflation and the female entry into the labour market. In the light of these results, inequality seems to be a matter of political choices and price stability rather than an economic necessity.

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