Advanced Search
MyIDEAS: Login to save this paper or follow this series

Examining the Gender Wealth Gap in Germany

Contents:

Author Info

  • Eva M. Sierminska
  • Joachim R. Frick
  • Markus M. Grabka

Abstract

Welfare-oriented analyses of economic outcome measures such as income and wealth generally rest on the assumption of pooled and equally shared resources among all household members. Yet the lack of individual-level data hampers the distribution of income and wealth within the ousehold context. Based on unique individual-level wealth data from the German Socio-Economic Panel (SOEP), this paper challenges the implicit assumption of internal redistribution by considering an alternative definition of the aggregation unit and by controlling its effect on distribution and inequality analysis. We find empirical evidence for a significant gender wealth gap of about 30,000 euros in Germany, which amounts to almost 50,000 euros for married partners. Decomposition analyses reveal that this gap is mostly driven by differences in characteristics between men and women, the most important factor being the individual's own income and labor market experience. However, this finding holds only for the upper part of the wealth distribution and can be shown only with non-parametric decomposition methods due to the mean orientation of the parametric Oaxaca-Blinder technique. Differences in the lower part of the wealth distribution appear to be driven mostly by the wealth function, i.e., the way in which women transform their characteristics into wealth.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.diw.de/documents/publikationen/73/diw_01.c.86907.de/diw_sp0115.pdf
Download Restriction: no

Bibliographic Info

Paper provided by DIW Berlin, The German Socio-Economic Panel (SOEP) in its series SOEPpapers on Multidisciplinary Panel Data Research with number 115.

as in new window
Length: 44 p.
Date of creation: 2008
Date of revision:
Handle: RePEc:diw:diwsop:diw_sp115

Contact details of provider:
Postal: Mohrenstraße 58, D-10117 Berlin
Phone: xx49-30-89789-671
Fax: xx49-30-89789-109
Email:
Web page: http://www.diw.de/en/soep
More information through EDIRC

Related research

Keywords: Wealth gap; wealth inequality; gender; SOEP;

Other versions of this item:

Find related papers by JEL classification:

This paper has been announced in the following NEP Reports:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Eva Sierminska & Andrea Brandolini & Timothy M Smeeding, 2007. "Comparing wealth distribution across rich countries: the Luxembourg Wealth Study project," IFC Bulletins chapters, Bank for International Settlements, in: Bank for International Settlements (ed.), Proceedings of the IFC Conference on "Measuring the financial position of the household sector", Basel, 30-31 August 2006 - Volume 1, volume 25, pages 297-310 Bank for International Settlements.
  2. John Gibson & Trinh Le & Steven Stillman, 2007. "What Explains the Wealth Gap Between Immigrants and the New Zealand Born?," CReAM Discussion Paper Series 0715, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
  3. Lena Edlund & Wojciech Kopczuk, 2009. "Women, Wealth, and Mobility," American Economic Review, American Economic Association, American Economic Association, vol. 99(1), pages 146-78, March.
  4. Gert G. Wagner & Joachim R. Frick & Jürgen Schupp, 2007. "The German Socio-Economic Panel Study (SOEP): Scope, Evolution and Enhancements," SOEPpapers on Multidisciplinary Panel Data Research 1, DIW Berlin, The German Socio-Economic Panel (SOEP).
  5. Zagorsky, Jay L, 1999. "Young Baby Boomers' Wealth," Review of Income and Wealth, International Association for Research in Income and Wealth, International Association for Research in Income and Wealth, vol. 45(2), pages 135-56, June.
  6. Phillip B. Levine & Olivia S. Mitchell & James F. Moore, . "Women on the Verge of Retirement: Predictors of Retiree Well-being," Pension Research Council Working Papers, Wharton School Pension Research Council, University of Pennsylvania 97-2, Wharton School Pension Research Council, University of Pennsylvania.
  7. Blau, Francine D & Kahn, Lawrence M, 1997. "Swimming Upstream: Trends in the Gender Wage Differential in 1980s," Journal of Labor Economics, University of Chicago Press, University of Chicago Press, vol. 15(1), pages 1-42, January.
  8. DiNardo, John & Fortin, Nicole M & Lemieux, Thomas, 1996. "Labor Market Institutions and the Distribution of Wages, 1973-1992: A Semiparametric Approach," Econometrica, Econometric Society, Econometric Society, vol. 64(5), pages 1001-44, September.
  9. Haddad, Lawrence & Kanbur, Ravi, 1989. "How serious is the neglect of intrahousehold inequality ?," Policy Research Working Paper Series 296, The World Bank.
  10. June O'Neill, 2003. "The Gender Gap in Wages, circa 2000," American Economic Review, American Economic Association, American Economic Association, vol. 93(2), pages 309-314, May.
  11. Francine D. Blau & Lawrence M. Kahn, 2000. "Gender Differences in Pay," NBER Working Papers 7732, National Bureau of Economic Research, Inc.
  12. Francine D. Blau & Lawrence M. Kahn, 1994. "International Differences in Male Wage Inequality: Institutions versus Market Forces," NBER Working Papers 4678, National Bureau of Economic Research, Inc.
  13. Suen, Wing, 1997. "Decomposing Wage Residuals: Unmeasured Skill or Statistical Artifact?," Journal of Labor Economics, University of Chicago Press, University of Chicago Press, vol. 15(3), pages 555-66, July.
  14. Deborah A. Cobb-Clark & Vincent Hildebrand, 2004. "The Wealth of Mexican Americans," Social and Economic Dimensions of an Aging Population Research Papers, McMaster University 116, McMaster University.
  15. Carmen Diana Deere & Cheryl Doss, 2006. "The Gender Asset Gap: What Do We Know And Why Does It Matter?," Feminist Economics, Taylor & Francis Journals, Taylor & Francis Journals, vol. 12(1-2), pages 1-50.
  16. Robert Barsky & John Bound & Kerwin Charles & Joseph Lupton, 2001. "Accounting for the Black-White Wealth Gap: A Nonparametric Approach," NBER Working Papers 8466, National Bureau of Economic Research, Inc.
  17. Joachim R. Frick & Markus M. Grabka & Jan Marcus, 2007. "Editing and Multiple Imputation of Item-Non-Response in the 2002 Wealth Module of the German Socio-Economic Panel (SOEP)," SOEPpapers on Multidisciplinary Panel Data Research 18, DIW Berlin, The German Socio-Economic Panel (SOEP).
  18. Miles S. Kimball, 1989. "Precautionary Saving in the Small and in the Large," NBER Working Papers 2848, National Bureau of Economic Research, Inc.
  19. Lucie Schmidt & Purvi Sevak, 2006. "Gender, Marriage, and Asset Accumulation in the United States," Department of Economics Working Papers, Department of Economics, Williams College 2006-06, Department of Economics, Williams College.
  20. Lupton, J. & Smith, J.P., 1999. "Marriage, Assets, and Savings," Papers, RAND - Labor and Population Program 99-12, RAND - Labor and Population Program.
  21. Oaxaca, Ronald, 1973. "Male-Female Wage Differentials in Urban Labor Markets," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 14(3), pages 693-709, October.
  22. Woolley, Frances R, 1993. "The Feminist Challenge to Neoclassical Economics," Cambridge Journal of Economics, Oxford University Press, Oxford University Press, vol. 17(4), pages 485-500, December.
  23. Juhn, Chinhui & Murphy, Kevin M & Pierce, Brooks, 1993. "Wage Inequality and the Rise in Returns to Skill," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 101(3), pages 410-42, June.
  24. Regina Riphahn & Oliver Serfling, 2005. "Item non-response on income and wealth questions," Empirical Economics, Springer, Springer, vol. 30(2), pages 521-538, 09.
  25. Joachim R. Frick & Markus M. Grabka & Eva M. Sierminska, 2007. "Representative Wealth Data for Germany from the German SOEP: The Impact of Methodological Decisions around Imputation and the Choice of the Aggregation Unit," Discussion Papers of DIW Berlin 672, DIW Berlin, German Institute for Economic Research.
  26. Shelley A. Phipps & Peter S. Burton, 1995. "Sharing within Families: Implications for the Measurement of Poverty among Individuals in Canada," Canadian Journal of Economics, Canadian Economics Association, Canadian Economics Association, vol. 28(1), pages 177-204, February.
  27. John Gibson & Trinh Le & Grant Scobie, 2006. "Household Bargaining Over Wealth And The Adequacy Of Women'S Retirement Incomes In New Zealand," Feminist Economics, Taylor & Francis Journals, Taylor & Francis Journals, vol. 12(1-2), pages 221-246.
  28. Alan S. Blinder, 1973. "Wage Discrimination: Reduced Form and Structural Estimates," Journal of Human Resources, University of Wisconsin Press, vol. 8(4), pages 436-455.
  29. Judith Robinson, 2002. "Race, Gender, and Familial Status: Discrimination in One US Mortgage Lending Market," Feminist Economics, Taylor & Francis Journals, Taylor & Francis Journals, vol. 8(2), pages 63-85.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Frank Cowell & Karagiannaki, E. & Abigail Mcknight, 2013. "GINI DP 72: Accounting for cross-country differences in wealth inequality," GINI Discussion Papers, AIAS, Amsterdam Institute for Advanced Labour Studies 72, AIAS, Amsterdam Institute for Advanced Labour Studies.
  2. Wyrwich, Michael, 2013. "Can socioeconomic heritage produce a lost generation with regard to entrepreneurship?," Journal of Business Venturing, Elsevier, vol. 28(5), pages 667-682.
  3. Hans Fehr & Manuel Kallweit & Fabian Kindermann, 2009. "Marital Risk, Family Insurance, and Public Policy," SOEPpapers on Multidisciplinary Panel Data Research 226, DIW Berlin, The German Socio-Economic Panel (SOEP).

Lists

This item is featured on the following reading lists or Wikipedia pages:
  1. SOEP based publications

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:diw:diwsop:diw_sp115. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Bibliothek).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.