May take a joke in dignity (7)

I believe the answer is:

majesty

'dignity' is the definition.
(I have seen 'Regal dignity ' mean 'majesty' so perhaps 'dignity' could also mean 'majesty')

'may take a joke' is the wordplay.
'take' means one lot of letters goes inside another.
'a joke' becomes 'jest' ('jest' can be a synonym of 'joke').
'may' placed around 'jest' is 'MAJESTY'.

'in' is the link.

(Other definitions for majesty that I've seen before include "Monarch's designation" , "Supreme power" , "August character" , "Regal dignity" , "Air of royalty" .)

I've seen this clue in The Globe and Mail.

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