Inequality and savings

Economic Memo - September 2022 - No. 11

Authors Andersen, Henrik Yde; Krause, Thomas; Bartscher, Alina; Kuchler, Andreas
Subject household balance sheets
Type Economic Memo
Year 2022
Published 30 September 2022
Abstract icon This memo studies the impact of demographic shifts and income inequality on the evolution of savings rates in Denmark, and compares with evidence from the US. Income inequality has followed similar trends in Denmark as in the US, and savings rates vary in a similar way over the life cycle and along the income distribution in the two countries. Changes in savings behavior play an important role for the evolution of total savings.