January, Skiing, and Income Inequality in Denmark

This audio is from the "How to Live in Denmark" podcast.

Denmark has long been known for its egalitarian culture, where flaunting wealth—like wearing a Rolex—can still be seen as bad taste. However, income inequality in Denmark has been steadily increasing over the past few decades as the country has grown more prosperous.

Wage Gaps and Salary Transparency
One way to see the growing divide is on Danish Reddit forums like DK Lønseddel, where people share their salary slips. A medical engineer may take home 80,000 kroner a month, while a healthcare worker earns just 20,000 kroner—a clear reflection of how earnings vary across industries.

Private Services vs. Public Services
Rising income inequality in Denmark is also evident in the shift toward private services. The Danish welfare state provides free education and healthcare, but more people are opting for private alternatives.

Education: Roughly one in five children nationwide—and one in four in Copenhagen—now attend private schools instead of tax-funded folkeskole.
Healthcare: Private medical insurance is increasingly popular, allowing quicker access to specialists, elective surgeries, and mental health services. In contrast, public healthcare can involve long wait times for non-emergency procedures like cataract surgery or physiotherapy for sports injuries.
Denmark’s Rising GINI Coefficient
Economists track income inequality in Denmark using the GINI coefficient, which measures economic disparity on a scale from 0 (perfect equality) to 100 (maximum inequality).

In the late 1980s, Denmark’s GINI coefficient was 22.
Today, it has risen to 30.6, according to Denmark’s official statistics agency.
For comparison:
UK: 32
USA: 41
Brazil: 52
While Denmark remains more equal than many other countries, it is less equal than it used to be.

Rising Housing Prices and Wealth Accumulation
One major factor driving income inequality in Denmark is skyrocketing real estate prices.

In 1995, the average price per square meter for a home near Copenhagen was 7,000 kroner.
Today, that price has jumped to 57,000 kroner, according to the Association of Danish Mortgage Banks.
This means that those who bought property decades ago have seen their wealth grow significantly, while younger generations struggle to enter the market.

Changes to Denmark’s Top Tax Rate
Denmark’s Social Democrat government has also loosened the topskat (top tax), which applies to earnings over 600,000 kroner per year (~$80,000 USD). These tax cuts benefit higher earners, further widening the wealth gap.

A Tale of Two Januaries
The effects of income inequality in Denmark are particularly visible in winter. Many Danes who pay topskat are just returning from ski trips in Switzerland, Austria, or Val d’Isère, where they enjoy frostklar (crisp, sunny winter days).

Meanwhile, for the bottom 80% of earners, sunlamps in solariums—self-service tanning booths found in corner shops—are a popular (and much cheaper) way to get some winter sunshine.

Conclusion
Denmark is still a relatively equal society compared to much of the world, but the gap between rich and poor is growing. Income inequality in Denmark is reflected in wages, housing prices, private services, and taxation policies. As economic shifts continue, the challenge for policymakers will be balancing prosperity with equality.