IDEAS home Printed from https://ideas.repec.org/p/diw/diwwpp/dp672.html
   My bibliography  Save this paper

Representative Wealth Data for Germany from the German SOEP: The Impact of Methodological Decisions around Imputation and the Choice of the Aggregation Unit

Author

Listed:
  • Joachim R. Frick
  • Markus M. Grabka
  • Eva M. Sierminska

Abstract

The definition and operationalization of wealth information in population surveys and the corresponding microdata requires a wide range of more or less normative assumptions. However, the decisions made in both the pre- and post-data-collection stage may interfere consid-erably with the substantive research question. Looking at wealth data from the German SOEP, this paper focuses on the impact of collecting information at the individual rather than house-hold level, and on "imputation and editing" as a means of dealing with measurement error. First, we assess how the choice of unit of aggregation or unit of analysis affects wealth distri-bution and inequality analysis. Obviously, when measured in "per capita household" terms, wealth is less unequally distributed than at the individual level. This is the result of significant redistribution within households, and also provides evidence of a significant persisting gender wealth gap. Secondly, we find multiple imputation to be an effective means of coping with selective non-response. There is a significant impact of imputation on the share of wealth holders (increas-ing on average by 15%) and also on aggregate wealth (plus 30%). However, with respect to inequality, the results are ambiguous. Looking at the major outcome variable for the whole population-net worth-the Gini coefficient decreases, whereas a top-sensitive measure dou-bles. The non-random selectivity built into the missing process and the consideration of this selectivity in the imputation process clearly contribute to this finding. Obviously, the treatment of measurement errors after data collection, especially with respect to the imputation of missing values, affects cross-national comparability and thus may require some cross-national harmonization of the imputation strategies applied to the various national datasets.

Suggested Citation

  • Joachim R. Frick & Markus M. Grabka & Eva M. Sierminska, 2007. "Representative Wealth Data for Germany from the German SOEP: The Impact of Methodological Decisions around Imputation and the Choice of the Aggregation Unit," Discussion Papers of DIW Berlin 672, DIW Berlin, German Institute for Economic Research.
  • Handle: RePEc:diw:diwwpp:dp672
    as

    Download full text from publisher

    File URL: https://www.diw.de/documents/publikationen/73/diw_01.c.55815.de/dp672.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 31(3), pages 129-137.
    2. René Böheim & Stephen P. Jenkins, 2000. "Do Current Income and Annual Income Measures Provide Different Pictures of Britain's Income Distribution?," Discussion Papers of DIW Berlin 214, DIW Berlin, German Institute for Economic Research.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Jaanika Meriküll & Merike Kukk & Tairi Rõõm, 2021. "What explains the gender gap in wealth? Evidence from administrative data," Review of Economics of the Household, Springer, vol. 19(2), pages 501-547, June.
    2. GRABKA Markus & MARCUS Jan & SIERMINSKA Eva, 2013. "Wealth distribution within couples and financial decision making," LISER Working Paper Series 2013-02, Luxembourg Institute of Socio-Economic Research (LISER).
    3. Julia Groiß & Alyssa Schneebaum & Barbara Schuster, 2018. "Vermögensunterschiede nach Geschlecht in Österreich," Wirtschaft und Gesellschaft - WuG, Kammer für Arbeiter und Angestellte für Wien, Abteilung Wirtschaftswissenschaft und Statistik, vol. 44(1), pages 45-72.
    4. Sierminska, Eva & Piazzalunga, Daniela & Grabka, Markus M., 2018. "Transitioning towards more equality? Wealth gender differences and the changing role of explanatory factors over time," GLO Discussion Paper Series 252, Global Labor Organization (GLO).
    5. Eva M. Sierminska & Joachim R. Frick & Markus M. Grabka, 2010. "Examining the gender wealth gap," Oxford Economic Papers, Oxford University Press, vol. 62(4), pages 669-690, October.
    6. Ziebarth, Nicolas R. & Frick, Joachim R., 2010. "Revisiting the Income-Health Nexus: The Importance of Choosing the "Right" Indicator," IZA Discussion Papers 4787, Institute of Labor Economics (IZA).
    7. James B. Davies & Susanna Sandström & Anthony Shorrocks & Edward N. Wolff, 2011. "The Level and Distribution of Global Household Wealth," Economic Journal, Royal Economic Society, vol. 121(551), pages 223-254, March.
    8. Markus Grabka & Jan Marcus & Eva Sierminska, 2015. "Wealth distribution within couples," Review of Economics of the Household, Springer, vol. 13(3), pages 459-486, September.
    9. Karla Cordova & Markus M. Grabka & Eva Sierminska, 2021. "Pension Wealth and the Gender Wealth Gap," SOEPpapers on Multidisciplinary Panel Data Research 1141, DIW Berlin, The German Socio-Economic Panel (SOEP).
    10. Joachim R. Frick & Markus M. Grabka & Jan Marcus, 2007. "Editing and Multiple Imputation of Item-Non-Response in the 2002 Wealth Module of the German Socio-Economic Panel (SOEP)," SOEPpapers on Multidisciplinary Panel Data Research 18, DIW Berlin, The German Socio-Economic Panel (SOEP).
    11. Eva M. Sierminska & Joachim R. Frick & Markus M. Grabka, 2008. "Examining the Gender Wealth Gap in Germany," SOEPpapers on Multidisciplinary Panel Data Research 115, DIW Berlin, The German Socio-Economic Panel (SOEP).
    12. Lorenz, Hanno & Christl, Michael, 2015. "Armut: Ungleichheit & Verteilung," EconStor Books, ZBW - Leibniz Information Centre for Economics, number 119606.
    13. S. Anger & J. R. Frick & J. Goebel & M. M. Grabka & O. Groh-Samberg & H. Haas & E. Holst & P. Krause & M. Kroh & H. Lohmann & R. Pischner & J. Schupp & I. Sieber & T. Siedler & C. Schmitt & C. K. Spie, 2008. "Zur Weiterentwicklung von SOEPsurvey und SOEPservice," Vierteljahrshefte zur Wirtschaftsforschung / Quarterly Journal of Economic Research, DIW Berlin, German Institute for Economic Research, vol. 77(3), pages 157-177.
    14. Joachim Frick & Nicolas Ziebarth, 2013. "Welfare-related health inequality: does the choice of measure matter?," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 14(3), pages 431-442, June.
    15. Keese, Matthias, 2011. "Thrifty Wives and Lavish Husbands? – Bargaining Power and Financial Dicisions in Germany," Ruhr Economic Papers 258, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    16. repec:zbw:rwirep:0258 is not listed on IDEAS
    17. Matthias Keese, 2011. "Thrifty Wives and Lavish Husbands? – Bargaining Power and Financial Dicisions in Germany," Ruhr Economic Papers 0258, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
    18. Julia Groiß & Alsyssa Schneebaum & Barbara Schuster, 2017. "Vermögensunterschiede nach Geschlecht in Österreich und Deutschland: Eine Analyse auf der Personenebene," Working Paper Reihe der AK Wien - Materialien zu Wirtschaft und Gesellschaft 168, Kammer für Arbeiter und Angestellte für Wien, Abteilung Wirtschaftswissenschaft und Statistik.
    19. Sachverständigenrat zur Begutachtung der gesamtwirtschaftlichen Entwicklung, 2007. "Das Erreichte nicht verspielen. Jahresgutachten 2007/08," Annual Economic Reports / Jahresgutachten, German Council of Economic Experts / Sachverständigenrat zur Begutachtung der gesamtwirtschaftlichen Entwicklung, volume 127, number 200708.
    20. David Gallusser & Matthias Krapf, 2019. "Joint Income-Wealth Inequality: An Application Using Administrative Tax Data," CESifo Working Paper Series 7876, CESifo.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Song, Wei-Ling & Uzmanoglu, Cihan, 2016. "TARP announcement, bank health, and borrowers’ credit risk," Journal of Financial Stability, Elsevier, vol. 22(C), pages 22-32.
    2. Raymundo M. Campos-Vázquez, 2013. "Efectos de los ingresos no reportados en el nivel y tendencia de la pobreza laboral en México," Ensayos Revista de Economia, Universidad Autonoma de Nuevo Leon, Facultad de Economia, vol. 0(2), pages 23-54, November.
    3. Stephen Brown & William Goetzmann & Bing Liang & Christopher Schwarz, 2008. "Mandatory Disclosure and Operational Risk: Evidence from Hedge Fund Registration," Journal of Finance, American Finance Association, vol. 63(6), pages 2785-2815, December.
    4. Paul W. Miller & Barry R. Chiswick, 2002. "Immigrant earnings: Language skills, linguistic concentrations and the business cycle," Journal of Population Economics, Springer;European Society for Population Economics, vol. 15(1), pages 31-57.
    5. Chul‐Woo Kwon & Peter F. Orazem & Daniel M. Otto, 2006. "Off‐farm labor supply responses to permanent and transitory farm income," Agricultural Economics, International Association of Agricultural Economists, vol. 34(1), pages 59-67, January.
    6. Jonathan Gruber & Aaron Yelowitz, 1999. "Public Health Insurance and Private Savings," Journal of Political Economy, University of Chicago Press, vol. 107(6), pages 1249-1274, December.
    7. Jean-Louis Arcand & Linguère M'Baye, 2013. "Braving the waves: the role of time and risk preferences in illegal migration from Senegal," CERDI Working papers halshs-00855937, HAL.
    8. Sandra Müllbacher & Wolfgang Nagl, 2017. "Labour supply in Austria: an assessment of recent developments and the effects of a tax reform," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 44(3), pages 465-486, August.
    9. Campbell, Randall C. & Nagel, Gregory L., 2016. "Private information and limitations of Heckman's estimator in banking and corporate finance research," Journal of Empirical Finance, Elsevier, vol. 37(C), pages 186-195.
    10. Leye Li & Louise Yi Lu & Dongyue Wang, 2022. "External labour market competitions and stock price crash risk: evidence from exposures to competitor CEOs’ award‐winning events," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 62(S1), pages 1421-1460, April.
    11. Jože P. Damijan & Mark Knell, 2005. "How Important Is Trade and Foreign Ownership in Closing the Technology Gap? Evidence from Estonia and Slovenia," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 141(2), pages 271-295, July.
    12. Calcagno, R. & Renneboog, L.D.R., 2004. "Capital Structure and Managerial Compensation : The Effects of Renumeration Seniority," Discussion Paper 2004-120, Tilburg University, Center for Economic Research.
    13. Nakashima, Kiyotaka & Ogawa, Toshiaki, 2020. "The Impacts of Strengthening Regulatory Surveillance on Bank Behavior: A Dynamic Analysis from Incomplete to Complete Enforcement of Capital Regulation in Microprudential Policy," MPRA Paper 99938, University Library of Munich, Germany.
    14. Sarah Bridges & David Lawson, 2008. "Health and Labour Market Participation in Uganda," WIDER Working Paper Series DP2008-07, World Institute for Development Economic Research (UNU-WIDER).
    15. Ahn T. Le, 2003. "Female Labour Market Participation: Differences Between Primary and Tied Movers," Economics Discussion / Working Papers 03-17, The University of Western Australia, Department of Economics.
    16. Inmaculada García-Mainar & Víctor M. Montuenga-Gómez, 2017. "Subjective educational mismatch and signalling in Spain," Documentos de Trabajo dt2017-03, Facultad de Ciencias Económicas y Empresariales, Universidad de Zaragoza.
    17. Insik Min & Jong‐Ho Kim, 2003. "Modeling Credit Card Borrowing: A Comparison of Type I and Type II Tobit Approaches," Southern Economic Journal, John Wiley & Sons, vol. 70(1), pages 128-143, July.
    18. Son K. Lam & Thomas E. DeCarlo & Ashish Sharma, 2019. "Salesperson ambidexterity in customer engagement: do customer base characteristics matter?," Journal of the Academy of Marketing Science, Springer, vol. 47(4), pages 659-680, July.
    19. Bertoli, Simone & Dequiedt, Vianney & Zenou, Yves, 2016. "Can selective immigration policies reduce migrants' quality?," Journal of Development Economics, Elsevier, vol. 119(C), pages 100-109.
    20. McCausland, David & Pouliakas, Konstantinos & Theodossiou, Ioannis, 2005. "Some are Punished and Some are Rewarded: A Study of the Impact of Performance Pay on Job Satisfaction," MPRA Paper 14243, University Library of Munich, Germany.

    More about this item

    Keywords

    Wealth; Item non-response; multiple imputation; SOEP;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • C81 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Methodology for Collecting, Estimating, and Organizing Microeconomic Data; Data Access
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:diw:diwwpp:dp672. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: . General contact details of provider: https://edirc.repec.org/data/diwbede.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Bibliothek (email available below). General contact details of provider: https://edirc.repec.org/data/diwbede.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.