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The distribution of national income in Germany, 1992–2019

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  • Bach, Stefan
  • Bartels, Charlotte
  • Neef, Theresa

Abstract

This paper estimates and analyzes the distribution and composition of pre-tax national income in Germany since reunification, combining personal income tax returns, household survey data, and national accounts. We find that pre-tax national income inequality has increased since the 1990s, though to a lesser extent than suggested by previous studies. Our results draw parallels in top income structure and concentration to the United States: Half of the top 1% earners are non-corporate business owners in labor-intensive professions contrasting with corporate top incomes in France. Also the concentration of pre-tax national income in Germany is similar to the United States and higher than in France.

Suggested Citation

  • Bach, Stefan & Bartels, Charlotte & Neef, Theresa, 2026. "The distribution of national income in Germany, 1992–2019," European Economic Review, Elsevier, vol. 181(C).
    • Handle: RePEc:eee:eecrev:v:181:y:2026:i:c:s0014292125001990
    DOI: 10.1016/j.euroecorev.2025.105149
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    Keywords

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    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • E01 - Macroeconomics and Monetary Economics - - General - - - Measurement and Data on National Income and Product Accounts and Wealth; Environmental Accounts
    • H2 - Public Economics - - Taxation, Subsidies, and Revenue
    • H5 - Public Economics - - National Government Expenditures and Related Policies
    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs

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