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Income inequality and poverty in front of and during the economic crisis - An empirical investigation for Germany 2002-2010

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  • Jürgen Faik

    ()
    (FaMa – Neue Frankfurter Sozialforschung)

Abstract

Based on data from the German Socio-Economic Panel (SOEP), both income inequality and poverty are considered for Germany in front of and during the economic crisis 2008-2010. This comprises binary logistic regressions where it is tested whether a person is belonging to a certain income region or not. The units of analysis are differentiated by residential status, nationality, sex, age, household size/household type, employment status, etc. For instance, the likelihood of unemployed persons for being located in the low-income region weakly increased between 2007 and 2009. Those microeconomic calculations are correlated with the macroeconomic variables economic growth, inflation, and general unemployment. At the peak of the crisis – in 2009 – inequality dropped, and it increased afterwards. Poverty was not affected very much by economic developments during the crisis but at least an in-crease of persons, who stayed within the poverty region, occurred between 2008 and 2009 (compared with 2007/2008).

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File URL: http://www.ecineq.org/milano/WP/ECINEQ2012-255.pdf
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Bibliographic Info

Paper provided by ECINEQ, Society for the Study of Economic Inequality in its series Working Papers with number 255.

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Length: 24 pages
Date of creation: May 2012
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Handle: RePEc:inq:inqwps:ecineq2012-255

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Keywords: Personal income distribution; welfare; inequality; poverty; economic crisis;

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  1. Aaberge, Rolf, et al, 2000. " Unemployment Shocks and Income Distribution: How Did the Nordic Countries Fare during Their Crises?," Scandinavian Journal of Economics, Wiley Blackwell, Wiley Blackwell, vol. 102(1), pages 77-99, March.
  2. Habib, Bilal & Narayan, Ambar & Olivieri, Sergio & Sanchez, Carolina, 2010. "The Impact of the Financial Crisis on Poverty and Income Distribution: Insights from Simulations in Selected Countries," World Bank - Economic Premise, The World Bank, The World Bank, issue 7, pages 1-4, March.
  3. Gert G. Wagner & Joachim R. Frick & Jürgen Schupp, 2007. "The German Socio-Economic Panel Study (SOEP) – Scope, Evolution and Enhancements," Schmollers Jahrbuch : Journal of Applied Social Science Studies / Zeitschrift für Wirtschafts- und Sozialwissenschaften, Duncker & Humblot, Berlin, Duncker & Humblot, Berlin, vol. 127(1), pages 139-169.
  4. International Monetary Fund, 2002. "Financial Crises, Poverty, and Income Distribution," IMF Working Papers 02/4, International Monetary Fund.
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