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How unification and immigration affected the German income distribution

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  • Grabka, Markus M.
  • Schwarze, Johannes
  • Wagner, Gert G.

Abstract

The German economy is not only affected by unification of Germany but by a significant influx of immigrants from abroad and huge migration from East to West Germany around the date of unification. Data from the German Socio-Economic Panel Study (GSOEP) allows one to disentangle those effects by decomposition of the Theil I(0)-Index of inequality. In addition, the paper offers insights into the transition from a socalist economy into a market oriented one. --

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Bibliographic Info

Article provided by Elsevier in its journal European Economic Review.

Volume (Year): 43 (1999)
Issue (Month): 4-6 (April)
Pages: 867-878

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Handle: RePEc:eee:eecrev:v:43:y:1999:i:4-6:p:867-878

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References

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  1. Mookherjee, Dilip & Shorrocks, Anthony F, 1982. "A Decomposition Analysis of the Trend in UK Income Inequality," Economic Journal, Royal Economic Society, vol. 92(368), pages 886-902, December.
  2. Schwarze, Johannes, 1996. "How Income Inequality Changed in Germany following Reunification: An Empirical Analysis Using Decomposable Inequality Measures," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 42(1), pages 1-11, March.
  3. Schrettl, Wolfram, 1992. "Transition with Insurance: German Unification Reconsidered," Oxford Review of Economic Policy, Oxford University Press, vol. 8(1), pages 144-55, Spring.
  4. Shorrocks, A F, 1980. "The Class of Additively Decomposable Inequality Measures," Econometrica, Econometric Society, vol. 48(3), pages 613-25, April.
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Cited by:
  1. Frick, Joachim R. & Goebel, Jan, 2005. "Regional Income Stratification in Unified Germany Using a Gini Decomposition Approach," IZA Discussion Papers 1891, Institute for the Study of Labor (IZA).
  2. Biewen, Martin, 2002. "Bootstrap inference for inequality, mobility and poverty measurement," Journal of Econometrics, Elsevier, vol. 108(2), pages 317-342, June.
  3. Gulgun Bayaz Ozturk & Richard V. Burkhauser & Kenneth A. Couch, 2013. "Consolidating the Evidence on Income Mobility in the Western States of Germany and the U.S. from 1984-2006," SOEPpapers on Multidisciplinary Panel Data Research 544, DIW Berlin, The German Socio-Economic Panel (SOEP).
  4. Biewen, Martin, 2002. "The Covariance Structure of East and West German Incomes and its Implications for the Persistence of Poverty and Inequality," IZA Discussion Papers 459, Institute for the Study of Labor (IZA).
  5. Constant, Amelie F. & Shachmurove, Yochanan, 2003. "Entrepreneurial Ventures and Wage Differentials Between Germans and Immigrants," IZA Discussion Papers 879, Institute for the Study of Labor (IZA).
  6. Regina T. Riphahn, 2002. "Bruttoeinkommensverteilung in Deutschland 1984 - 1999 und Ungleichheit unter ausländischen Erwerbstätigen," Discussion Papers of DIW Berlin 272, DIW Berlin, German Institute for Economic Research.
  7. Easterlin, Richard A. & Zimmermann, Anke, 2006. "Life Satisfaction and Economic Outcomes in Germany Pre- and Post-Unification," IZA Discussion Papers 2494, Institute for the Study of Labor (IZA).
  8. Joachim R. Frick & Markus M. Grabka, 2000. "Personelle Einkommensverteilung und der Einfluß von Imputed Rent," Discussion Papers of DIW Berlin 225, DIW Berlin, German Institute for Economic Research.
  9. Gulgun Bayaz Ozturk, 2011. "Supply and Demand Factors in Understanding the Educational Earnings Differentials: West Germany and the United States," European Journal of Comparative Economics, Cattaneo University (LIUC), vol. 8(2), pages 235-263, December.

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