This paper decomposes inequality in subjective well-being into inequality due to socioeconomic background (SEB) and meritocratic inequality due to differences in individual merits such as school performance. We measure the meritocratic share of well-being, defined as the share of explained...

We investigate long-run earnings responses to taxes in the presence of dynamic returns to effort. First, we develop a theoretical model of earnings determination with dynamic returns to effort. In this model, earnings responses are delayed and mediated by job switches. Second, using...

Denmark is one of the richest countries in the world and achieves this in combination with low inequality, low unemployment, and high income security. This performance is often attributed to the Danish labor market model characterized by what has become known as flexicurity. This essay describes...