The gap between the richest 1% in Denmark and the rest of the population is ‘growing rapidly’ according to a new study by Arbejderbevægelsens Erhvervsråd (AE), the labour business council.
The top 1% of high earners in Denmark saw their real income rise by 14.8% in 2023, according to the findings, which are based on income data from Statistics Denmark.
At the same time, while the income enjoyed by the richest percent significantly exceeded inflation, real incomes for middle-income earners actually declined, by 0.6%.
Earnings inequality
“Income inequality has increased quite clearly in the past year,” commented Sune Caspersen, chief analyst at Arbejderbevægelsens Erhvervsråd. “So while the very richest have experienced a significant increase in income, the typical Dane experienced a decrease in their real income.”
In addition, the 40% of Danes in the lower-income bracket experienced a decline of 0.3% in real income in 2023, after tax.
“While inflation ate into the incomes of ordinary Danes, there was a party among the wealthy in the stock markets,” Caspersen added.
Income gap
As regards the income gap, the richest are now earning 60% more than they did in 2013, while for the average Dane, incomes have risen by just 9%.
The Danish government has pledged a redrawing of tax legislation, however Caspersen believes that this will do little to combat the inequality present in the market.
“The government’s tax measures are the wrong way to go if it wants to combat inequality,” he said. “Politicians have the opportunity to counteract increasing inequality through tax policy, but it has chosen to take the opposite path by easing share tax and inheritance tax on family-owned companies, which typically benefit the very richest Danes.” Read more here.
Development in real income in 2023, in Denmark
| Income Group | Development (2022-2023, %) |
|---|---|
| The richest 1% | 14.8 |
| Richest 10% | 5.3 |
| Average | 1.1 |
| Poorest 40% | -0.3 |
| Median | -0.6 |
