The Svartalfar live in Svartalfheim. In some sources they are identified with the dwarfs of Nidavellir, who likewise had a reputation as skilled smiths. In general, however, elves and dwarfs are distinguished in surviving Norse literature.
In Denmark the elves seem to have merged with the Huldra and are beautiful females who can dance a man to death. If you see them from the back, they are hollow.
The Brothers Grimm fairy tale The Shoemaker & the Elves is probably the most famous original elf tale. The elves are only one foot tall in this story, naked, and like to work on shoes, as leprechauns do. When the shoemaker rewards their work with little clothes, the elves are so delighted, that they run away and are never seen again. (This tales is echoed in J. K. Rowling's Harry Potter stories: see below.)Modern fantasy literature has revived the elves as a race distinct from fairies. Fantasy elves are different from Norse elves, but are more akin to that older mythology and to the Irish sdhe than to folktale elves.Scandinavian mythology includes light-elves (Lioslfar) who dwell in the third space in heaven, dark-elves (Dcklfar), and black-elves (Svartalfar). The black-elves were skilled smiths, and the most skilled were reputed to be the sons of Ivaldi, the father of Idun.
