Distributional national accounts provide a more accurate picture of income distribution than previous statistics

Abstract

The paper presents the history, basic concept, and implementation of distributional national accounts (DINA) using Finnish register data for 1987–2023. In DINA, national income is allocated in full to individuals, including income components that are not directly observed in registers, such as value-added taxes, imputed housing income, and, in particular, retained corporate profits.

The results show that the income share of the top 1% depends critically on the assumptions used to allocate retained profits. In 2021, the top 1% share ranges from approximately 9% to 14%, depending on the assumption.

Under most assumptions, DINA and the traditional measure based on taxable income provide broadly similar pictures of the level and development of income inequality. However, the difference becomes substantial if retained profits are assumed to be distributed according to observed ownership patterns.

In international comparisons with Germany, France, and the United States, income inequality in Finland has generally been lower, although the results also depend on the assumptions applied.

The authors therefore emphasise the importance of transparency about the underlying assumptions and the systematic reporting of alternative results, rather than presenting a single measure as the one “correct” measure of income inequality.

Publication Information

Juuti, T., Kanninen, O. & Ravaska, T. (2026),  Jakaumatilinpito antaa aiempia tilastoja tarkemman kuvan tulonjaosta. In Finér, L. & Systä, J. (eds. 2026), Eriarvoisuuden tila Suomessa 2026, Vastapaino.