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Transitioning towards more equality? Wealth gender differences and the changing role of explanatory factors over time

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  • SIERMINSKA Eva
  • PIAZZALUNGA Daniela
  • GRABKA Markus

Abstract

We investigate the explanatory factors that have contributed to changing wealth levels and the gender wealth gap in Germany over the period 2002-2012. In particular, we analyze the role of changes in labor supply, permanent income, portfolio composition, and marital status on wealth accumulation. Using individual level micro data from the German Socio-Economic Panel results show that real mean wealth levels for the working age population have been decreasing for both women and men since 2002 and that the wealth gap has decreased by 13.5% to 30.700€. We show that the increased participation of women in the labor market and their occupational structure had an increasing positive role on women’s wealth accumulation. Making use of the panel dimension in the data and of Oaxaca-Blinder and Firpo, Fortin, Lemieux decompositions, in comparison to previous analyses, a diminishing role of permanent income is observed, due both to a reduction in the gender difference in permanent income and in gender differences in its returns. Overall, the evidence points to more equal wealth accumulation both in terms of characteristics and returns.

Suggested Citation

  • SIERMINSKA Eva & PIAZZALUNGA Daniela & GRABKA Markus, 2018. "Transitioning towards more equality? Wealth gender differences and the changing role of explanatory factors over time," LISER Working Paper Series 2018-18, Luxembourg Institute of Socio-Economic Research (LISER).
  • Handle: RePEc:irs:cepswp:2018-18
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    4. Gornick, Janet & Sierminska, Eva, 2021. "Wealth Accumulation and Retirement Preparedness in Cross-National Perspective: A Gendered Analysis of Outcomes among Single Adults," IZA Policy Papers 181, Institute of Labor Economics (IZA).
    5. Javier Olivera & Yadiraah Iparraguirre, 2022. "The Gender Gap in Pension Savings: Evidence from Peru's Individual Capitalization System," LISER Working Paper Series 2022-06, Luxembourg Institute of Socio-Economic Research (LISER).
    6. Michał Brzeziński & Katarzyna Sałach, 2020. "Why wealth inequality differs between post-socialist countries?," Working Papers 2020-14, Faculty of Economic Sciences, University of Warsaw.
    7. Miriam Rehm, 2020. "Vermögensverteilung und Wirtschaftskrisen," Wirtschaftsdienst, Springer;ZBW - Leibniz Information Centre for Economics, vol. 100(4), pages 245-249, April.
    8. Karla Cordova & Markus M. Grabka & Eva Sierminska, 2022. "Pension Wealth and the Gender Wealth Gap," European Journal of Population, Springer;European Association for Population Studies, vol. 38(4), pages 755-810, October.
    9. Merike Kukk & Jaanika Meriküll & Tairi Rõõm, 2023. "The Gender Wealth Gap in Europe: Application of Machine Learning to Predict Individual‐level Wealth," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 69(2), pages 289-317, June.
    10. Maria Laura Di Tommaso & Dalit Contini & Dalila De Rosa & Francesca Ferrara & Daniela Piazzalunga & Ornella Robutti, 2021. "Tackling the gender gap in mathematics with active learning methodologies," Carlo Alberto Notebooks 657, Collegio Carlo Alberto.
    11. Glaubitz, Rick & Harnack-Eber, Astrid & Wetter, Miriam, 2022. "The gender gap in lifetime earnings: The role of parenthood," Discussion Papers 2022/3, Free University Berlin, School of Business & Economics.
    12. Waitkus, Nora & Minkus, Lara, 2021. "Investigating the gender wealth gap across occupational classes," LSE Research Online Documents on Economics 108206, London School of Economics and Political Science, LSE Library.
    13. Javier Olivera & Yadiraah Iparraguirre, "undated". "The Gender Gap in Pension Savings," Working Papers ecineq-, ECINEQ, Society for the Study of Economic Inequality.
    14. Abudy, Menachem (Meni) & Mugerman, Yevgeny & Wiener, Zvi, 2021. "Stock markets and female participation in the labor force," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 74(C).
    15. Frémeaux, Nicolas & Leturcq, Marion, 2020. "Inequalities and the individualization of wealth," Journal of Public Economics, Elsevier, vol. 184(C).
    16. Javier Olivera & Yadiraah Iparraguirre, 2022. "Gender gap in pension savings: Evidence from Peru’s individual capitalization system∗," Documentos de Trabajo / Working Papers 2022-513, Departamento de Economía - Pontificia Universidad Católica del Perú.
    17. Di Tommaso, Maria Laura & Contini, Dalit & De Rosa, Dalila & Piazzalunga, Daniela, 2020. "Tackling the Gender Gap in Math with Active Learning Teaching Practices," Department of Economics and Statistics Cognetti de Martiis. Working Papers 202016, University of Turin.
    18. Miriam Rehm & Alyssa Schneebaum & Barbara Schuster, 2022. "Intra-Couple Wealth Inequality: What’s Socio-Demographics Got to Do with it?," European Journal of Population, Springer;European Association for Population Studies, vol. 38(4), pages 681-720, October.
    19. Rehm, Miriam & Schneebaum, Alyssa & Schuster, Barbara, 2022. "Intra-couple wealth inequality: What's demographics got to do with it?," ifso working paper series 22, University of Duisburg-Essen, Institute for Socioeconomics (ifso).

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    More about this item

    Keywords

    Wealth differences; Gender; SOEP; decomposition; labor supply; occupations;
    All these keywords.

    JEL classification:

    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution

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