Income inequality
Is income inequality high or low in Denmark? A number of indicators are presented here to show how evenly or unevenly disposable income is distributed across population. Income levels vary between the socio-economic strata of society, but also over the span of a lifetime, e.g. students typically have a low income and later move towards higher incomes.
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Measures of inequality. With a single number it states the degree of inequality in an income distribution. The Gini coefficient is a number between 0 and 100. The closer Gini is to 0, the more equal the income distribution.
In income statistics, the population is often divided into 10 equally sized groups according to their income. The lowest 10 percent of income earners are typically in the 1st decile, and the highest income are found in the 10th decile. The decile thresholds are the 9 amounts that separate the 10 groups, so exactly 10 percent of the population has an income amount below the first decile threshold.
Poverty measured in relation to the general standard of living in society. Statistics Denmark's indicator for relative poverty combines low income, i.e. persons in families with an equivalent disposable income of less than 50 percent of the median income, with low wealth, excluding students living away from home, persons with no income at all, and young people who have moved from non-relative poor households during the year from the group of relative poor.
The amount of money that a person or household has available for spending and saving after income taxes and interest expenses have been accounted for.
The amount where half of the population has a lower income and half of the population has a higher income.
Selected statistics on Income inequality
Development in the Gini coefficient
The main sources are registers operated by The Central Tax Administration. This includes the Central Taxpayers' Register (CSR), the Central Pension Register (CPS), and the Pension Tax Register (PAF).
In addition, the following registers are used and maintained by Statistics Denmark:
- Central Business Register,
- Register for Labour Market Policy Measures (AMFORA),
- Register of Unemployment Benefit Payments (DUR),
- Register of Population Statistics,
- Employment Classification Module (AKM),
- Statistic Denmark's Register of Child Allowance Statistics,
- Register of Pension Statistics,
- Register of Housing Allowance Statistics.
The Central Taxpayers' Register (CSR): Data is produced by The Central Customs and Tax Administration. They are based on final tax assessments from the Central Taxpayers' Register. It contains data on income, income tax allowance, and wealth, reported by municipalities to The Central Customs and Tax Administration on the basis of the income tax return forms. Furthermore, the register contains a range of data reported by employers, banks, and municipalities to the tax authorities according to The Danish Tax Control Act. The register also contains information used in valuing social benefits. Finally, the register contains different background information for administrative use, e.g. concerning pensions, joint taxation, and various estimated amounts in relation to income tax assessment.
Statistic Denmarks e-income Register (The Salary Information Register (COR): Data Produced by the Central Customs and Tax Administration): The register is based on the information that has to be sent to the tax authority by employers and others who pay wages and salaries, remunerations, pensions etc. For each employee, the pay declaration slip contains information regarding all employment including size and kind of income, size of ATP contributions (labor market supplementary pension contributions) and the amount withheld to A-tax (provisional tax). The register, in this way, makes it possible to split up the A-income into various income types, e.g. wages and salaries, unemployment benefits and social pensions. The register also contains information about some kinds of B-income (other income than A-income dividends from shares and tax free social pensions), e.g. unemployment benefits for the self-employed.
The Central Pension Register (CPS): Data Produced by the Central Customs and Tax Administration in August: The register contains information about contributions to pension funds which has to be sent to the tax authority by insurance companies, pension funds, financial institution and other administrators of pension capital.
The Pension Tax Register (PAF): Data Produced by the Central Customs and Tax Administration in August: The register is based on information about pension withdrawals subject to duties which have to be sent to the tax authority by insurance companies, pension funds, financial institutions and other administrators of pension capital.
Statistics Denmark's Central Business Register: The register contains information about legal enterprise units and possibly their departments. The register also contains information about the responsible owners of the registered enterprises. A number of identification items are contained in the register, for instance: Possible responsible owners, civil registration number, information about geographic location, type of ownership, sector, and size.
Statistics Denmark's Register for Labor Market Policy Measures (AMFORA): For each individual person the AMFORA includes information about the duration of the periods in which the person participated in the labor market policy measure.
Register of Unemployment Benefit Payments: The register contains information about persons who are insured against unemployment and receive unemployment benefits (excluding holiday allowance benefits). The register includes information about weekly paid unemployment benefits (excluding holiday allowance benefits).
Register of Population Statistics: The Register of Population Statistics contains basic demographic information about the Danish population. The basis for the register is the Central Population Register.
Statistic Denmark's Register of Pensions -The register contains data on reciepients on disablility- and old-age pensions. It classifies individuals by the type of pension they recieve, it covers relevant attributes for the amount that is paid out and it includes all relevant payouts of pension benefits.
Statistic Denmark's Register of Child Allowance Statistics, Statistic Denmark's Register of Housing Allowance Statistics.
Development in the P90/10 rate
The main sources are registers operated by The Central Tax Administration. This includes the Central Taxpayers' Register (CSR), the Central Pension Register (CPS), and the Pension Tax Register (PAF).
In addition, the following registers are used and maintained by Statistics Denmark:
- Central Business Register,
- Register for Labour Market Policy Measures (AMFORA),
- Register of Unemployment Benefit Payments (DUR),
- Register of Population Statistics,
- Employment Classification Module (AKM),
- Statistic Denmark's Register of Child Allowance Statistics,
- Register of Pension Statistics,
- Register of Housing Allowance Statistics.
The Central Taxpayers' Register (CSR): Data is produced by The Central Customs and Tax Administration. They are based on final tax assessments from the Central Taxpayers' Register. It contains data on income, income tax allowance, and wealth, reported by municipalities to The Central Customs and Tax Administration on the basis of the income tax return forms. Furthermore, the register contains a range of data reported by employers, banks, and municipalities to the tax authorities according to The Danish Tax Control Act. The register also contains information used in valuing social benefits. Finally, the register contains different background information for administrative use, e.g. concerning pensions, joint taxation, and various estimated amounts in relation to income tax assessment.
Statistic Denmarks e-income Register (The Salary Information Register (COR): Data Produced by the Central Customs and Tax Administration): The register is based on the information that has to be sent to the tax authority by employers and others who pay wages and salaries, remunerations, pensions etc. For each employee, the pay declaration slip contains information regarding all employment including size and kind of income, size of ATP contributions (labor market supplementary pension contributions) and the amount withheld to A-tax (provisional tax). The register, in this way, makes it possible to split up the A-income into various income types, e.g. wages and salaries, unemployment benefits and social pensions. The register also contains information about some kinds of B-income (other income than A-income dividends from shares and tax free social pensions), e.g. unemployment benefits for the self-employed.
The Central Pension Register (CPS): Data Produced by the Central Customs and Tax Administration in August: The register contains information about contributions to pension funds which has to be sent to the tax authority by insurance companies, pension funds, financial institution and other administrators of pension capital.
The Pension Tax Register (PAF): Data Produced by the Central Customs and Tax Administration in August: The register is based on information about pension withdrawals subject to duties which have to be sent to the tax authority by insurance companies, pension funds, financial institutions and other administrators of pension capital.
Statistics Denmark's Central Business Register: The register contains information about legal enterprise units and possibly their departments. The register also contains information about the responsible owners of the registered enterprises. A number of identification items are contained in the register, for instance: Possible responsible owners, civil registration number, information about geographic location, type of ownership, sector, and size.
Statistics Denmark's Register for Labor Market Policy Measures (AMFORA): For each individual person the AMFORA includes information about the duration of the periods in which the person participated in the labor market policy measure.
Register of Unemployment Benefit Payments: The register contains information about persons who are insured against unemployment and receive unemployment benefits (excluding holiday allowance benefits). The register includes information about weekly paid unemployment benefits (excluding holiday allowance benefits).
Register of Population Statistics: The Register of Population Statistics contains basic demographic information about the Danish population. The basis for the register is the Central Population Register.
Statistic Denmark's Register of Pensions -The register contains data on reciepients on disablility- and old-age pensions. It classifies individuals by the type of pension they recieve, it covers relevant attributes for the amount that is paid out and it includes all relevant payouts of pension benefits.
Statistic Denmark's Register of Child Allowance Statistics, Statistic Denmark's Register of Housing Allowance Statistics.
Income by deciles
The main sources are registers operated by The Central Tax Administration. This includes the Central Taxpayers' Register (CSR), the Central Pension Register (CPS), and the Pension Tax Register (PAF).
In addition, the following registers are used and maintained by Statistics Denmark:
- Central Business Register,
- Register for Labour Market Policy Measures (AMFORA),
- Register of Unemployment Benefit Payments (DUR),
- Register of Population Statistics,
- Employment Classification Module (AKM),
- Statistic Denmark's Register of Child Allowance Statistics,
- Register of Pension Statistics,
- Register of Housing Allowance Statistics.
The Central Taxpayers' Register (CSR): Data is produced by The Central Customs and Tax Administration. They are based on final tax assessments from the Central Taxpayers' Register. It contains data on income, income tax allowance, and wealth, reported by municipalities to The Central Customs and Tax Administration on the basis of the income tax return forms. Furthermore, the register contains a range of data reported by employers, banks, and municipalities to the tax authorities according to The Danish Tax Control Act. The register also contains information used in valuing social benefits. Finally, the register contains different background information for administrative use, e.g. concerning pensions, joint taxation, and various estimated amounts in relation to income tax assessment.
Statistic Denmarks e-income Register (The Salary Information Register (COR): Data Produced by the Central Customs and Tax Administration): The register is based on the information that has to be sent to the tax authority by employers and others who pay wages and salaries, remunerations, pensions etc. For each employee, the pay declaration slip contains information regarding all employment including size and kind of income, size of ATP contributions (labor market supplementary pension contributions) and the amount withheld to A-tax (provisional tax). The register, in this way, makes it possible to split up the A-income into various income types, e.g. wages and salaries, unemployment benefits and social pensions. The register also contains information about some kinds of B-income (other income than A-income dividends from shares and tax free social pensions), e.g. unemployment benefits for the self-employed.
The Central Pension Register (CPS): Data Produced by the Central Customs and Tax Administration in August: The register contains information about contributions to pension funds which has to be sent to the tax authority by insurance companies, pension funds, financial institution and other administrators of pension capital.
The Pension Tax Register (PAF): Data Produced by the Central Customs and Tax Administration in August: The register is based on information about pension withdrawals subject to duties which have to be sent to the tax authority by insurance companies, pension funds, financial institutions and other administrators of pension capital.
Statistics Denmark's Central Business Register: The register contains information about legal enterprise units and possibly their departments. The register also contains information about the responsible owners of the registered enterprises. A number of identification items are contained in the register, for instance: Possible responsible owners, civil registration number, information about geographic location, type of ownership, sector, and size.
Statistics Denmark's Register for Labor Market Policy Measures (AMFORA): For each individual person the AMFORA includes information about the duration of the periods in which the person participated in the labor market policy measure.
Register of Unemployment Benefit Payments: The register contains information about persons who are insured against unemployment and receive unemployment benefits (excluding holiday allowance benefits). The register includes information about weekly paid unemployment benefits (excluding holiday allowance benefits).
Register of Population Statistics: The Register of Population Statistics contains basic demographic information about the Danish population. The basis for the register is the Central Population Register.
Statistic Denmark's Register of Pensions -The register contains data on reciepients on disablility- and old-age pensions. It classifies individuals by the type of pension they recieve, it covers relevant attributes for the amount that is paid out and it includes all relevant payouts of pension benefits.
Statistic Denmark's Register of Child Allowance Statistics, Statistic Denmark's Register of Housing Allowance Statistics.
Development in relative poverty
The main sources are registers operated by The Central Tax Administration. This includes the Central Taxpayers' Register (CSR), the Central Pension Register (CPS), and the Pension Tax Register (PAF).
In addition, the following registers are used and maintained by Statistics Denmark:
- Central Business Register,
- Register for Labour Market Policy Measures (AMFORA),
- Register of Unemployment Benefit Payments (DUR),
- Register of Population Statistics,
- Employment Classification Module (AKM),
- Statistic Denmark's Register of Child Allowance Statistics,
- Register of Pension Statistics,
- Register of Housing Allowance Statistics.
The Central Taxpayers' Register (CSR): Data is produced by The Central Customs and Tax Administration. They are based on final tax assessments from the Central Taxpayers' Register. It contains data on income, income tax allowance, and wealth, reported by municipalities to The Central Customs and Tax Administration on the basis of the income tax return forms. Furthermore, the register contains a range of data reported by employers, banks, and municipalities to the tax authorities according to The Danish Tax Control Act. The register also contains information used in valuing social benefits. Finally, the register contains different background information for administrative use, e.g. concerning pensions, joint taxation, and various estimated amounts in relation to income tax assessment.
Statistic Denmarks e-income Register (The Salary Information Register (COR): Data Produced by the Central Customs and Tax Administration): The register is based on the information that has to be sent to the tax authority by employers and others who pay wages and salaries, remunerations, pensions etc. For each employee, the pay declaration slip contains information regarding all employment including size and kind of income, size of ATP contributions (labor market supplementary pension contributions) and the amount withheld to A-tax (provisional tax). The register, in this way, makes it possible to split up the A-income into various income types, e.g. wages and salaries, unemployment benefits and social pensions. The register also contains information about some kinds of B-income (other income than A-income dividends from shares and tax free social pensions), e.g. unemployment benefits for the self-employed.
The Central Pension Register (CPS): Data Produced by the Central Customs and Tax Administration in August: The register contains information about contributions to pension funds which has to be sent to the tax authority by insurance companies, pension funds, financial institution and other administrators of pension capital.
The Pension Tax Register (PAF): Data Produced by the Central Customs and Tax Administration in August: The register is based on information about pension withdrawals subject to duties which have to be sent to the tax authority by insurance companies, pension funds, financial institutions and other administrators of pension capital.
Statistics Denmark's Central Business Register: The register contains information about legal enterprise units and possibly their departments. The register also contains information about the responsible owners of the registered enterprises. A number of identification items are contained in the register, for instance: Possible responsible owners, civil registration number, information about geographic location, type of ownership, sector, and size.
Statistics Denmark's Register for Labor Market Policy Measures (AMFORA): For each individual person the AMFORA includes information about the duration of the periods in which the person participated in the labor market policy measure.
Register of Unemployment Benefit Payments: The register contains information about persons who are insured against unemployment and receive unemployment benefits (excluding holiday allowance benefits). The register includes information about weekly paid unemployment benefits (excluding holiday allowance benefits).
Register of Population Statistics: The Register of Population Statistics contains basic demographic information about the Danish population. The basis for the register is the Central Population Register.
Statistic Denmark's Register of Pensions -The register contains data on reciepients on disablility- and old-age pensions. It classifies individuals by the type of pension they recieve, it covers relevant attributes for the amount that is paid out and it includes all relevant payouts of pension benefits.
Statistic Denmark's Register of Child Allowance Statistics, Statistic Denmark's Register of Housing Allowance Statistics.
Relative poverty disaggregated by age
The main sources are registers operated by The Central Tax Administration. This includes the Central Taxpayers' Register (CSR), the Central Pension Register (CPS), and the Pension Tax Register (PAF).
In addition, the following registers are used and maintained by Statistics Denmark:
- Central Business Register,
- Register for Labour Market Policy Measures (AMFORA),
- Register of Unemployment Benefit Payments (DUR),
- Register of Population Statistics,
- Employment Classification Module (AKM),
- Statistic Denmark's Register of Child Allowance Statistics,
- Register of Pension Statistics,
- Register of Housing Allowance Statistics.
The Central Taxpayers' Register (CSR): Data is produced by The Central Customs and Tax Administration. They are based on final tax assessments from the Central Taxpayers' Register. It contains data on income, income tax allowance, and wealth, reported by municipalities to The Central Customs and Tax Administration on the basis of the income tax return forms. Furthermore, the register contains a range of data reported by employers, banks, and municipalities to the tax authorities according to The Danish Tax Control Act. The register also contains information used in valuing social benefits. Finally, the register contains different background information for administrative use, e.g. concerning pensions, joint taxation, and various estimated amounts in relation to income tax assessment.
Statistic Denmarks e-income Register (The Salary Information Register (COR): Data Produced by the Central Customs and Tax Administration): The register is based on the information that has to be sent to the tax authority by employers and others who pay wages and salaries, remunerations, pensions etc. For each employee, the pay declaration slip contains information regarding all employment including size and kind of income, size of ATP contributions (labor market supplementary pension contributions) and the amount withheld to A-tax (provisional tax). The register, in this way, makes it possible to split up the A-income into various income types, e.g. wages and salaries, unemployment benefits and social pensions. The register also contains information about some kinds of B-income (other income than A-income dividends from shares and tax free social pensions), e.g. unemployment benefits for the self-employed.
The Central Pension Register (CPS): Data Produced by the Central Customs and Tax Administration in August: The register contains information about contributions to pension funds which has to be sent to the tax authority by insurance companies, pension funds, financial institution and other administrators of pension capital.
The Pension Tax Register (PAF): Data Produced by the Central Customs and Tax Administration in August: The register is based on information about pension withdrawals subject to duties which have to be sent to the tax authority by insurance companies, pension funds, financial institutions and other administrators of pension capital.
Statistics Denmark's Central Business Register: The register contains information about legal enterprise units and possibly their departments. The register also contains information about the responsible owners of the registered enterprises. A number of identification items are contained in the register, for instance: Possible responsible owners, civil registration number, information about geographic location, type of ownership, sector, and size.
Statistics Denmark's Register for Labor Market Policy Measures (AMFORA): For each individual person the AMFORA includes information about the duration of the periods in which the person participated in the labor market policy measure.
Register of Unemployment Benefit Payments: The register contains information about persons who are insured against unemployment and receive unemployment benefits (excluding holiday allowance benefits). The register includes information about weekly paid unemployment benefits (excluding holiday allowance benefits).
Register of Population Statistics: The Register of Population Statistics contains basic demographic information about the Danish population. The basis for the register is the Central Population Register.
Statistic Denmark's Register of Pensions -The register contains data on reciepients on disablility- and old-age pensions. It classifies individuals by the type of pension they recieve, it covers relevant attributes for the amount that is paid out and it includes all relevant payouts of pension benefits.
Statistic Denmark's Register of Child Allowance Statistics, Statistic Denmark's Register of Housing Allowance Statistics.
On the statistics – documentation, sources and method
See the documentation of statistics to learn more:
The purpose of the income statistics - is to provide statistics on the population's incomes and tax payments as well as the distribution of incomes. The statistics are useful in the field of social sciences and form the basis for effective policymaking in areas that affect the economic situation of the households. Statistics Denmark has published statistics on income since 1905 and has coherent time series going back to the 1980’s.