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Inequality Trends in the Swiss Income Distribution

Author

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  • Carol Ernst
  • Michael Gerfin
  • Robert E. Leu

Abstract

As in many countries income inequality in Switzerland has increased between the early 1980s and the early 1990s. This paper applies decomposition methods in order to identify potential causes for this increase. The decomposition is performed by a) population subgroups and b) income sources. Our results indicate that demographic shifts can only account for a minor fraction of the overall change. The decomposition by income sources provides a clearer picture. The main contributing factors to the increase in overall inequality are the household head's labour earnings and household wealth income.

Suggested Citation

  • Carol Ernst & Michael Gerfin & Robert E. Leu, 2000. "Inequality Trends in the Swiss Income Distribution," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), vol. 136(III), pages 289-305, September.
    • Handle: RePEc:ses:arsjes:2000-iii-5
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    Cited by:

    1. Enrico Bolzani & Ramses H. Abul Naga, 2002. "La Distribution des Salaires en Suisse: Quelques Observations sur la Récession des Années 90," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), vol. 138(II), pages 115-136, June.
    2. Goette, Lorenz & Stutzer, Alois, 2020. "Blood donations and incentives: Evidence from a field experiment," Journal of Economic Behavior & Organization, Elsevier, vol. 170(C), pages 52-74.
    3. Anthony Shorrocks & Guanghua Wan, 2005. "Spatial decomposition of inequality," Journal of Economic Geography, Oxford University Press, vol. 5(1), pages 59-81, January.
    4. Florian Zainhofer, 2007. "Life Cycle Portfolio Choice: A Swiss Perspective," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), vol. 143(II), pages 187-238, June.

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