REDISTRIBUTION OF INCOME IN DENMARK BEFORE AND AFTER THE WAR

Tms study has the same purpose as the two previous studies1 (from 1938139 (1937) and 1949, respectively), namely that of throwing light on the redistribution of income effected through taxation and social welfare schemes in Denmark. This has been done by comparing the taxes paid and the social benefits received by the different social groups with the amounts they would have paid and received if the social policy and the tax policy had been neutral. This means that it is assumed that the social policy and the tax policy have not been income-transferring, i.e. that the persons who receive social benefits also pay for them by way of taxes, and that the remaining taxes are assumed to have been paid as a k e d percentage of total personal income. It is obvious that the income redistribution will be intluenced by the inclusion of more or fewer items in taxes and social benefits. As was done in Ussing's study, I have divided the population into four social main groups: self-employed farmers, other self-employed, employees and persons outside the labour force, each of these groups being subdivided into two income groups: above and below the health insurance limit.= The fourth group of persons outside the labour force also comprises groups of tax-payers who may be gainfully occupied, but who do not indicate any occupation in their income-tax returns. On the other hand, it is not quite certain whether, for instance, all old-age pensioners are to be found in the group of persons outside the labour force, since it may be expected that a number of such persons will not use the description of old-age pensioner but will describe themselves by means of their previous