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Income inequality and poverty in front of and during the economic crisis - An empirical investigation for Germany 2002-2010

  • Jürgen Faik

    ()

    (FaMa – Neue Frankfurter Sozialforschung)

Based on data from the German Socio-Economic Panel (SOEP), both income inequality and poverty are considered for Germany in front of and during the economic crisis 2008-2010. This comprises binary logistic regressions where it is tested whether a person is belonging to a certain income region or not. The units of analysis are differentiated by residential status, nationality, sex, age, household size/household type, employment status, etc. For instance, the likelihood of unemployed persons for being located in the low-income region weakly increased between 2007 and 2009. Those microeconomic calculations are correlated with the macroeconomic variables economic growth, inflation, and general unemployment. At the peak of the crisis – in 2009 – inequality dropped, and it increased afterwards. Poverty was not affected very much by economic developments during the crisis but at least an in-crease of persons, who stayed within the poverty region, occurred between 2008 and 2009 (compared with 2007/2008).

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File URL: http://www.ecineq.org/milano/WP/ECINEQ2012-255.pdf
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Paper provided by ECINEQ, Society for the Study of Economic Inequality in its series Working Papers with number 255.

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Length: 24 pages
Date of creation: May 2012
Date of revision:
Handle: RePEc:inq:inqwps:ecineq2012-255
Contact details of provider: Web page: http://www.ecineq.orgEmail:


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  1. Bilal Habib & Ambar Narayan & Sergio Olivieri & Carolina Sanchez, 2010. "The Impact of the Financial Crisis on Poverty and Income Distribution : Insights from Simulations in Selected Countries," World Bank Other Operational Studies 10206, The World Bank.
  2. International Monetary Fund, 2002. "Financial Crises, Poverty, and Income Distribution," IMF Working Papers 02/4, International Monetary Fund.
  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. Rolf Aaberge & Anders Björklund & Markus Jäntti & Peder J. Pedersen & Nina Smith & Tom Wennemo, 1997. "Unemployment Shocks and Income Distribution How Did the Nordic Countries Fare During their Crises?," Discussion Papers 201, Research Department of Statistics Norway.
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