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Intergenerational Income Stability: Is Germany Lagging Behind?

Author

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  • Paul Hufe
  • Andreas Peichl
  • Daniel Weishaar

Abstract

The ongoing discussion on inequality also covers the question of equal opportunities, or the extent to which income differences are due to the individuals themselves or their circumstances. According to a study recently published by the OECD, Germany is lagging behind the other industrialised nations in this respect. This article critically examines these results and shows that they represent a clear outlier compared to existing literature on this topic. The exceptionally high persistence level is particularly due to the observation of a specific population group, as well as the definition of income that is selected.

Suggested Citation

  • Paul Hufe & Andreas Peichl & Daniel Weishaar, 2018. "Intergenerational Income Stability: Is Germany Lagging Behind?," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 71(20), pages 20-28, October.
    • Handle: RePEc:ces:ifosdt:v:71:y:2018:i:20:p:20-28
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    Cited by:

    1. Maximilian Stockhausen, 2021. "Like father, like son? A comparison of absolute and relative intergenerational labour income mobility in Germany and the US," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 19(4), pages 667-683, December.
    2. Feld, Lars P. & Schmidt, Christoph M. & Schnabel, Isabel & Truger, Achim & Wieland, Volker, 2019. "Den Strukturwandel meistern. Jahresgutachten 2019/20 [Dealing with Structural Change. Annual Report 2019/20]," Annual Economic Reports / Jahresgutachten, German Council of Economic Experts / Sachverständigenrat zur Begutachtung der gesamtwirtschaftlichen Entwicklung, volume 127, number 201920.

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    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution

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