Factor Shares and Income Inequality: Empirical Evidence from Germany 2002-2008
AbstractWe examine the interplay between changes in the functional distribution of income and the distribution of market income among households. We use micro data from the German Socio-Economic Panel as well as macro data from the German Federal Statistical Office from 2002 to 2008. We categorize and evaluate the implications of changes in the functional distribution of income upon the distribution of income among individuals on the basis of a simple theoretic framework that links the degree of the concentration of income from asset flows among individuals to the (structural) relationship between individuals' levels of market income and their respective income shares from asset flows. Our empirical analysis offers two insights: First, the relative rise of income from asset flows reported by German National Accounting Statistics is also evident in the micro data taken from the German Socio-Economic Panel. Second, rising capital income shares are associated with an increasing concentration of market income.
Download InfoIf 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.
Bibliographic InfoPaper provided by DIW Berlin, The German Socio-Economic Panel (SOEP) in its series SOEPpapers on Multidisciplinary Panel Data Research with number 460.
Length: 21 p.
Date of creation: 2012
Date of revision:
Factor shares; income distribution; inequality; market income;
Other versions of this item:
- Adler, Martin & Schmid, Kai Daniel, 2012. "Factor shares and income inequality - Empirical evidence from Germany 2002 - 2008," University of Tuebingen Working Papers in Economics and Finance 34, University of Tuebingen, Faculty of Economics and Social Sciences.
- Martin Adler & Kai Daniel Schmid, 2012. "Factor Shares and Income Inequality - Empirical Evidence from Germany 2002-2008," IAW Discussion Papers 82, Institut für Angewandte Wirtschaftsforschung (IAW).
- D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
- D33 - Microeconomics - - Distribution - - - Factor Income Distribution
- E6 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook
- E25 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Aggregate Factor Income Distribution
This paper has been announced in the following NEP Reports:
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.:
- Markus M. Grabka, 2010. "Codebook for the $PEQUIV File 1984-2009: CNEF Variables with Extended Income Information for the SOEP," Data Documentation 49, DIW Berlin, German Institute for Economic Research.
- Ryan, Paul, 1996. "Factor Shares and Inequality in the UK," Oxford Review of Economic Policy, Oxford University Press, vol. 12(1), pages 106-26, Spring.
- Rodrik, Dani, 2007.
"How to Save Globalization from Its Cheerleaders,"
Working Paper Series
rwp07-038, Harvard University, John F. Kennedy School of Government.
- Eva Schlenker & Kai Daniel Schmid, 2013.
"Capital Income Shares and Income Inequality in the European Union,"
IMK Working Paper
119-2013, IMK at the Hans Boeckler Foundation, Macroeconomic Policy Institute.
- Schlenker, Eva & Schmid, Kai D., 2013. "Capital income shares and income inequality in the European Union," FZID Discussion Papers 80-2013, University of Hohenheim, Center for Research on Innovation and Services (FZID).
- Kai Daniel Schmid & Ulrike Stein, 2013.
"Explaining Rising Income Inequality in Germany, 1991-2010,"
SOEPpapers on Multidisciplinary Panel Data Research
592, DIW Berlin, The German Socio-Economic Panel (SOEP).
- Kai Daniel Schmid & Ulrike Stein, 2013. "Explaining Rising Income Inequality in Germany, 1991-2010," IMK Studies 32-2013, IMK at the Hans Boeckler Foundation, Macroeconomic Policy Institute.
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.