The article titled "Income Equality in the Nordic Countries: Myths, Facts, and Lessons," authored by Magne Mogstad, Kjell G. Salvanes, and Gaute Torsvik, appears in the Journal of Economic Literature, Vol. 63, No. 3, September 2025, pages 791–839. It critically examines the commonly held view that Nordic countries combine low income inequality with prosperity and growth through their socioeconomic model. The authors integrate theory and empirical evidence to explain how the Nordic model operates and why these countries achieve low income inequality. Their analysis reveals that income equality in the Nordics primarily results from a significant compression of hourly wages, which reduces returns to labor market skills and education. This compression stems from a wage bargaining system characterized by strong coordination both within and across industries. This key finding challenges prevailing explanations emphasizing redistribution via the tax-transfer system, public spending on employment-complementary goods, and public policies promoting human capital equality. The authors also discuss broader lessons for economies seeking to reduce inequality and highlight several unresolved or under-explored questions in the field. The article's JEL classifications focus on personal income distribution (D31), production macroeconomics (E23), taxation and redistributive effects (H23), human capital and labor productivity (J24), wage levels and differentials (J31), and collective bargaining (J52). Additional materials include a replication package and author disclosure statements, supporting transparency and further research. The article is accessible via the American Economic Association website with the DOI 10.1257/jel.20251636.