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Do high incomes reflect individual performance? The determinants of high incomes in Germany

Author

Listed:
  • Dierk Hirschel

    (LEUPHANA University Lüneburg,Department of Economic, Behaviour and Law Sciences, Research Institute on Professions (Forschungsinstitut Freie Berufe (FFB)))

Abstract

In neoclassical economic theory the level of individual income is predominantly determined by individual job performance. Thus high incomes reflect the high marginal productivity of labour of the affluent working population. While the scientific research of poverty has a long tradition, nearly nothing is known about the rich. This study tries to diminish this research gap by investigating the structure of high labour incomes in Germany. By revealing the determinants of high incomes by descriptive and paneleconometric analyses mit Daten des Sozio-ökonomischen Panels, we want to answer the question if high incomes are especially the result of individual job performance or rather the result of social selection through social background or sexual discrimination.

Suggested Citation

  • Dierk Hirschel, 2003. "Do high incomes reflect individual performance? The determinants of high incomes in Germany," FFB-Discussionpaper 42, Research Institute on Professions (Forschungsinstitut Freie Berufe (FFB)), LEUPHANA University Lüneburg.
    • Handle: RePEc:leu:wpaper:42
    as

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    File URL: http://www.leuphana.de/fileadmin/user_upload/Forschungseinrichtungen/ffb/files/publikationen/diskussion/DP_42_high_incomes_reflect.pdf
    File Function: First version, 2003
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    More about this item

    Keywords

    High incomes; social background; discrimination; human capital; job performance; GSOEP; theory of justice.;
    All these keywords.

    JEL classification:

    • J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing

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