The article examines income inequality and changes in earnings in Sweden from 1985 to 2016. A major recession in the early 1990s led to a significant rise in earnings inequality and volatility, affecting the country for many years. However, over two decades, real earnings grew steadily for both men and women, with decreasing inequality. Men experience less earnings fluctuation than women, but their earnings are more tied to the economy's ups and downs. High-educated and foreign-born workers face higher earnings volatility. The use of social benefits plays a crucial role in these trends, with higher benefit enrollment linked to greater earnings instability. As benefit programs became less generous over time, low-income workers saw stronger earnings growth, suggesting increased self-sufficiency.