Ökonomische Ungleichheit in Deutschland – ein Überblick

Peichl, Andreas; Hufe, Paul; Stöckli, Marc

doi:10.1515/pwp-2018-0028

Cited by 8 publications

(2 citation statements)

References 35 publications

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“…Bönke et al (2015) analyze lifetime earnings inequality and mobility of yearly earnings for 35 cohorts of West German men. Moreover, several studies analyze inequality in (equivalized) disposable household incomes -see, e.g., Hufe et al (2018) for a survey and Stockhausen and Maiworm (2021) or Grabka (2021) for recent studies.…”

Section: Introductionmentioning

confidence: 99%

Inequality and Income Dynamics in Germany

Drechsel-Grau¹,

Peichl²,

Schmieder³

et al. 2022

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We provide a comprehensive analysis of income inequality and income dynamics for Germany over the last two decades. Combining personal income tax and social security data allows us -for the first time -to offer a complete picture of the distribution of annual earnings in Germany. We find that cross-sectional inequality rose until 2009 for men and women. After the Great Recession inequality continued to rise at a slower rate for men and fell slightly for women due to compression at the lower tail. We further document substantial gender differences in average earnings and inequality over the life-cycle. While for men earnings rise and inequality falls as they grow older, many women reduce working hours when starting a family such that average earnings fall and inequality increases. Men's earnings changes are on average smaller than women's but are substantially more affected by the business cycle. During the Great Recession, men's earnings losses become magnified and gains are attenuated. Apart from recession years, earnings changes are significantly right-skewed reflecting the good overall state of the German labor market and increasing labor supply. In the second part of the paper, we study the distribution of total income including incomes of self-employed, business owners, and landlords. We find that total inequality increased significantly more than earnings inequality. Regarding income dynamics, entrepreneurs' income changes are more dispersed, less skewed, less leptokurtic and less dependent on average past income than workers' income changes. Finally, we find that top income earners have become less likely to fall out of the top 1 and 0.1 percent.

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Section: Introductionmentioning

confidence: 99%

Inequality and Income Dynamics in Germany

Drechsel-Grau¹,

Peichl²,

Schmieder³

et al. 2022

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show abstract

“…A small number of previous contributions have considered the development of income inequality in Germany after 2005. Peichl, Hufe and Stöckli (2018) document the evolution of inequality measures for disposable incomes over the same period, as we do in this paper. 2 These studies provide evidence for first stagnating and then slightly increasing inequality but do not attempt to relate this finding to other changes such as the employment boom.…”

Section: Introductionmentioning

confidence: 99%

Why a labour market boom does not necessarily bring down inequality: putting together Germany's inequality puzzle

Biewen

Sturm

2022

Fiscal Studies

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After an economically tough start to the new millennium, Germany experienced an unprecedented employment boom after 2005, only stopped by the COVID-19 pandemic. Persistently high levels of inequality despite a booming labour market and drastically falling unemployment rates constituted a puzzle, suggesting either that the German job miracle mainly benefitted individuals in the mid-or high-income range or that other developments offset the effects of the drastically improved labour market conditions. The present paper solves this puzzle by breaking down the observed changes in the distribution of disposable incomes between 2005-06 and 2015-16 into the contributions of eight different factors, one of them being the employment boom. Our results suggest that, while the latter did have an equalising impact, it was partially offset by the disequalising impact of other factors, and substantially dampened by the transfer system. Our results point to a strong role of the German transfer system as a distributional stabiliser implying that, if the COVID-19 shock were to persistently reverse all the employment gains that occurred during the boom, this would only have a moderately disequalising effect on the distribution of net incomes.

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Gleichheit und Gerechtigkeit

Breyer

Buchholz

2021

Ökonomie Des Sozialstaats

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Ökonomische Ungleichheit in Deutschland – ein Überblick

Cited by 8 publications

References 35 publications

Inequality and Income Dynamics in Germany

Inequality and Income Dynamics in Germany

Why a labour market boom does not necessarily bring down inequality: putting together Germany's inequality puzzle

Gleichheit und Gerechtigkeit

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