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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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File URL: http://econstor.eu/bitstream/10419/67395/1/Grabka_1999_How-Unification-Immigration.pdf
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Bibliographic Info

Article provided by ZBW - German National Library of Economics in its journal EconStor Open Access Articles.

Volume (Year): (1999-04)
Issue (Month): ()
Pages: 867-878

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Handle: RePEc:zbw:espost:67395

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Keywords: Decomposable inequality measure; Economics of transition; Economic impact of immigration;

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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. Joachim R. Frick & Timothy M. Smeeding & Gert G. Wagner, 1999. "Immigrants in Two Modern Nations: Characteristics of the Foreign and Native Born Populations in Germany and the United States," Vierteljahrshefte zur Wirtschaftsforschung / Quarterly Journal of Economic Research, DIW Berlin, German Institute for Economic Research, vol. 68(2), pages 297-307.
  4. Jantti, Markus, 1997. "Inequality in Five Countries in the 1980s: The Role of Demographic Shifts, Markets and Government Policies," Economica, London School of Economics and Political Science, vol. 64(255), pages 415-40, August.
  5. Schrettl, Wolfram, 1992. "Transition with Insurance: German Unification Reconsidered," Oxford Review of Economic Policy, Oxford University Press, vol. 8(1), pages 144-55, Spring.
  6. Peter Gottschalk & Timothy M. Smeeding, 1997. "Cross-National Comparisons of Earnings and Income Inequality," Journal of Economic Literature, American Economic Association, vol. 35(2), pages 633-687, June.
  7. 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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Citations

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Cited by:
  1. 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).
  2. 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.
  3. 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.
  4. Martin Biewen, 2005. "The Covariance Structure of East and West German Incomes and its Implications for the Persistence of Poverty and Inequality," German Economic Review, Verein für Socialpolitik, vol. 6(4), pages 445-469, November.
  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. Joachim R. Frick & Jan Goebel, 2005. "Regional Income Stratification in Unified Germany Using a Gini Decomposition Approach," Discussion Papers of DIW Berlin 540, DIW Berlin, German Institute for Economic Research.
  7. 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.
  8. 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).
  9. Biewen, Martin, 2002. "Bootstrap inference for inequality, mobility and poverty measurement," Journal of Econometrics, Elsevier, vol. 108(2), pages 317-342, June.

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