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Inequality Trends for Germany in the Last Two Decades: A Tale of Two Countries

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  • Dirk Krüger

    (Munich Center for the Economics of Aging (MEA))

Abstract

In this paper we …rst document inequality trends in wages, hours worked, earnings, consumption, and wealth for Germany from the last twenty years. We generally …nd that inequality was relatively stable inWest Germany until the German uni…cation (which happened politically in 1990 and in our data in 1991), and then trended upwards for wages and market incomes, especially after about 1998. Disposable income and consumption, on the other hand, display only a modest increase in inequality over the same period. These trends occured against the backdrop of lower trend growth of earnings, incomes and consumption in the 1990s relative to the 1980s. In the second part of the paper we further analyze the di¤erences between East and West Germans in terms of the evolution of levels and inequality of wages, income, and consumption.

Suggested Citation

  • Dirk Krüger, 2009. "Inequality Trends for Germany in the Last Two Decades: A Tale of Two Countries," MEA discussion paper series 09184, Munich Center for the Economics of Aging (MEA) at the Max Planck Institute for Social Law and Social Policy.
    • Handle: RePEc:mea:meawpa:09184
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    References listed on IDEAS

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    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D33 - Microeconomics - - Distribution - - - Factor Income Distribution
    • E - Macroeconomics and Monetary Economics

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