Development of Family Income Since the 1990s: A Fresh Look at German Microdata Using Income-Dependent Equivalence Scales

Garbuszus, Jan Marvin; Ott, Notburga; Pehle, Sebastian; Werding, Martin

doi:10.2139/ssrn.3269218

SSRN Journal

2018

DOI: 10.2139/ssrn.3269218

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Development of Family Income Since the 1990s: A Fresh Look at German Microdata Using Income-Dependent Equivalence Scales

Jan Marvin Garbuszus

Notburga Ott

Sebastian Pehle

et al.

Abstract: SOEPpapers on Multidisciplinary Panel Data Research at DIW Berlin This series presents research findings based either directly on data from the German SocioEconomic Panel study (SOEP) or using SOEP data as part of an internationally comparable data set (e.g. CNEF, ECHP, LIS, LWS, CHER/PACO). SOEP is a truly multidisciplinary household panel study covering a wide range of social and behavioral sciences:

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Cited by 3 publications

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“…For further illustrative results relating to the income situation of families since the 1990s, seeGarbuszus et al (2018b, ch. 7) orGarbuszus et al (2018a).20 This can be taken to be a lower bound for plausible weights. Still, results for this household type should be considered with a grain of salt.21 All graphs included in Figs.4 through 5have been smoothed by central moving averages over adjacent years.…”

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Income-dependent equivalence scales: A fresh look at German micro-data

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Income inequality and poverty risks receive a lot of attention in public debates and current research. To make income comparable across different types of households, applying the “(modified) OECD scale” – an equivalence scale with fixed weights for each household type – has become a quasi-standard in research. Instead, we derive a base-dependent equivalence scale allowing for scale weights that vary with income, building on micro-data from Germany. Our results suggest that appropriate equivalence scales are much steeper at the lower end of the income distribution than they are for higher income levels. We illustrate our findings by applying them to data on family income differentiated by household types. It turns out that using income-dependent equivalence scales matters for applied research on income inequality, especially if one is concerned with the composition, not just the size of the population at poverty risk.

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Income-dependent equivalence scales: A fresh look at German micro-data

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Gegenäußerung zum Aufsatz „Ein alternativer Ansatz zur Bemessung der Regelbedarfe in der Grundsicherung“

Schüssler¹

2019

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Auf dem Weg vom Regelbedarf zum Mindesteinkommen. Methoden und Rechenergebnisse auf der Basis der EVS 2018

Schüssler¹

2022

SFO

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Der vorliegende Beitrag beschreibt Methoden und stellt deren Ergebnisse vergleichend gegenüber, die in jüngster Zeit auf der Grundlage einer Statistik, der Einkommens- und Verbrauchstichprobe 2018 (EVS 2018), für den Regelbedarf ermittelt wurden. Einbezogen in die Darstellung sind die Modelle des Bundesministeriums für Arbeit und Soziales, der Parität auf der Grundlage von Sonderauswertungen der EVS 2018 durch Die Linke, von Becker/Tobsch (2020) für die Bundestagsfraktion Bündnis 90/Die Grünen, von Becker/Held (2020) für die Diakonie Deutschland sowie das Modell von Schüssler (2018; 2019). Für das Modell von Schüssler werden erstmals Resultate publiziert. Die Ergebnisse weisen mit Ausnahme des BMAS-Modells eine eher geringe Spannweite der resultierenden Euro-Beträge des „Bedarfs“ auf. Sie ist im wesentlichen durch die Wahl des Referenzbereichs (Bereich unterer Einkommen oder gesellschaftliche Mitte) sowie durch den politisch gesetzten Abstand des Regelbedarfs vom gewählten Referenzbereich bestimmt. From Standard Needs to Standard Income. Methods and Calculation Results Based on the EVS 2018 The following paper describes the methods and compares the results of recent studies carried out to determine income support, which were based on the 2018 federal statistic on income and consumer expenditures (EVS 2018). This paper examines the models of the BMAS (the German Federal Ministry of Labour and Social Affairs), of “Parität” (a german non-profit organisation) on the basis of special evaluations by the political party “Die Linke”, by Becker/Tobsch (2020) for the parliamentary group of “Bündnis 90/Die Grünen”, by Becker/Held (2020) for the “Diakonie Deutschland”, as well as the modelling by Schüssler (2018; 2019). For the first time results of Schüssler’s model are published here. The findings reveal – with the exception of the BMAS-Model – a relatively small range in the proposed level of “needs“ in Euros. This range is primarily determined by the choice of the reference range (lower household income or median income group), as well as by the politically determined gap between income support and the chosen reference range.

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Development of Family Income Since the 1990s: A Fresh Look at German Microdata Using Income-Dependent Equivalence Scales

Cited by 3 publications

References 24 publications

Income-dependent equivalence scales: A fresh look at German micro-data

Income-dependent equivalence scales: A fresh look at German micro-data

Gegenäußerung zum Aufsatz „Ein alternativer Ansatz zur Bemessung der Regelbedarfe in der Grundsicherung“

Auf dem Weg vom Regelbedarf zum Mindesteinkommen. Methoden und Rechenergebnisse auf der Basis der EVS 2018

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