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Routes to the Top

Author

Listed:
  • Johannes König

    (DIW Berlin - Deutsche Institut für Wirtschaftsforschung = German Institute for Economic Research)

  • Christian Schluter

    (AMSE - Aix-Marseille Sciences Economiques - EHESS - École des hautes études en sciences sociales - AMU - Aix Marseille Université - ECM - École Centrale de Marseille - CNRS - Centre National de la Recherche Scientifique, University of Southampton)

  • Carsten Schröder

    (DIW Berlin - Deutsches Institut für Wirtschaftsforschung)

Abstract

Who makes it to the top? We use the leading socio-economic survey in Germany, supplemented by extensive data on the rich, to answer this question. We identify the key predictors for belonging to the top 1 percent of income, wealth, and both distributions jointly. Although we consider many, only a few traits matter: Entrepreneurship and self-employment in conjunction with a sizable inheritance of company assets is the most important covariate combination across all rich groups. Our data suggest that all top 1 percent groups, but especially the joint top 1 percent, are predominantly populated by intergenerational entrepreneurs.

Suggested Citation

  • Johannes König & Christian Schluter & Carsten Schröder, 2025. "Routes to the Top," Post-Print hal-05084522, HAL.
    • Handle: RePEc:hal:journl:hal-05084522
    DOI: 10.1111/roiw.70015
    Note: View the original document on HAL open archive server: https://hal.science/hal-05084522v1
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    References listed on IDEAS

    as
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    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • C38 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Classification Methdos; Cluster Analysis; Principal Components; Factor Analysis
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement

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