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Asymptotic Income Distribution in the German Socio-Economic Panel (SOEP): Income Inequality and Darwinian Fitness

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  • Diego Montano

Abstract

In this paper, the relation between income inequality and population growth is analized from a Darwinian perspective. A Markov chain population growth model is presented and estimated using data from the German Socio-Economic Panel (SOEP). We estimate both population growth rates and steady-state income distribution for males and females. The results are compatible with the traditional age-based population growth models of demography, in so far as these are actually irreducible, positive-recurrent Markov chains. It is concluded that, from the perspective of individuals and family lines, income inequality may improve reproductive fitness of high-income individuals, and foster adaptive reproductive strategies for a given income level.

Suggested Citation

  • Diego Montano, 2011. "Asymptotic Income Distribution in the German Socio-Economic Panel (SOEP): Income Inequality and Darwinian Fitness," SOEPpapers on Multidisciplinary Panel Data Research 427, DIW Berlin, The German Socio-Economic Panel (SOEP).
    • Handle: RePEc:diw:diwsop:diw_sp427
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    References listed on IDEAS

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    1. Mikko Myrskylä & Hans-Peter Kohler & Francesco C. Billari, 2009. "Advances in development reverse fertility declines," Nature, Nature, vol. 460(7256), pages 741-743, August.
    2. Diane J. Macunovich, 1998. "Fertility and the Easterlin hypothesis: An assessment of the literature," Journal of Population Economics, Springer;European Society for Population Economics, vol. 11(1), pages 53-111.
    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, vol. 127(1), pages 139-169.
    4. Lars Eric Kroll & Thomas Lampert, 2008. "Soziale Unterschiede in der Lebenserwartung: Möglichkeiten auf Basis des Sozio-oekonomischen Panels," SOEPpapers on Multidisciplinary Panel Data Research 112, DIW Berlin, The German Socio-Economic Panel (SOEP).
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