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Inequality of earnings and housing costs – developments between and within regions

Author

Listed:
  • Breidenbach, Philipp

    (RWI – Leibniz Institute for Economic Research, Essen, Germany)

  • Schaffner, Sandra

    (RWI – Leibniz Institute for Economic Research, Essen, Germany ; Duisburg Business and Innovation, Duisburg, Germany)

Abstract

"Household well-being is strongly influenced by changes in income – but real income is strongly determined by housing costs. The evolution of inequalities in both variables largely determines the development of living conditions between households. In this paper, we look at inequality trends between 2008 and 2017 from a regional perspective – between and within regions. While neighborhood earnings inequality has generally declined slightly, it is rising within Germany’s largest cities. On the other hand, inequality in rentshas less declined within those cities than in the rest of Germany, corresponding to price increases in poorer neighborhoods, too. Households in these poor neighborhoods thus suffer from a below-average earnings development, while it seems that the main costs caused by new rentals increase similar to the rest of the city." (Author's abstract, IAB-Doku) ((en))

Suggested Citation

  • Breidenbach, Philipp & Schaffner, Sandra, 2025. "Inequality of earnings and housing costs – developments between and within regions," Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 59, pages 1-004.
    • Handle: RePEc:iab:iabjlr:v:59:i::p:a004
    DOI: 10.1186/s12651-024-00390-x
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    References listed on IDEAS

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    1. repec:iab:iabjlr:v:56:p:art.05 is not listed on IDEAS
    2. Ostermann, Kerstin & Eppelsheimer, Johann & Gläser, Nina & Haller, Peter & Oertel, Martina, 2022. "Geodata in labor market research: trends, potentials and perspectives," Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 56, pages 1-005.
    3. Kerstin Ostermann & Johann Eppelsheimer & Nina Gläser & Peter Haller & Martina Oertel, 2022. "Geodata in labor market research: trends, potentials and perspectives," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 56(1), pages 1-17, December.
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    Keywords

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    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
    • R31 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Housing Supply and Markets

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