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Has Income Inequality Spiked in Germany?

Author

Listed:
  • Markus M. Grabka
  • Jan Goebel
  • Jürgen Schupp

Abstract

New analyses of personal income distribution in Germany, based on data from the German Socio-Economic Panel (SOEP), show that real market income in private households rose significantly from 2005 to 2010. An increase in real disposable income was also observed. At the same time, income inequality decreased in both western and eastern Germany. However, the latter showed a further spread at the lower end of disposable income distribution. In the course of this development, the poverty risk in western Germany fell slightly from 2009 to 2010, while it remained unchanged in the eastern part of the country.

Suggested Citation

  • Markus M. Grabka & Jan Goebel & Jürgen Schupp, 2012. "Has Income Inequality Spiked in Germany?," DIW Economic Bulletin, DIW Berlin, German Institute for Economic Research, vol. 2(12), pages 3-14.
    • Handle: RePEc:diw:diwdeb:2012-12-1
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    File URL: https://www.diw.de/documents/publikationen/73/diw_01.c.412708.de/diw_econ_bull_2012-12-1.pdf
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    Citations

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    Cited by:

    1. Anthony Atkinson, 2015. "Can we reduce income inequality in OECD countries?," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 42(2), pages 211-223, May.
    2. Gustav A. Horn & Sebastian Gechert & Miriam Rehm & Kai D. Schmid, 2014. "Wirtschaftskrise unterbricht Anstieg der Ungleichheit," IMK Report 97-2014, IMK at the Hans Boeckler Foundation, Macroeconomic Policy Institute.
    3. Miriam Rehm & Kai Daniel Schmid & Dieter Wang, 2014. "Why has Inequality in Germany not Risen Further After 2005?," IMK Working Paper 137-2014, IMK at the Hans Boeckler Foundation, Macroeconomic Policy Institute.
    4. Friehe, Tim & Mechtel, Mario, 2014. "Conspicuous consumption and political regimes: Evidence from East and West Germany," European Economic Review, Elsevier, vol. 67(C), pages 62-81.
    5. Michele Battisti & Gabriel Felbermayr & Sybille Lehwald, 2016. "Inequality in Germany: Myths, Facts, and Policy Implications," ifo Working Paper Series 217, ifo Institute - Leibniz Institute for Economic Research at the University of Munich.
    6. Gabriel Felbermayr & Michele Battisti & Sybille Lehwald, 2016. "Income Inequality in Germany, Part 1: Is There a Trend Reversal?," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 69(13), pages 28-37, July.

    More about this item

    Keywords

    income inequality; poverty risk; SOEP;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty

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