IDEAS home Printed from https://ideas.repec.org/p/zbw/fubsbe/20137.html
   My bibliography  Save this paper

Mobility of top incomes in Germany

Author

Listed:
  • Jenderny, Katharina

Abstract

Mobility of top incomes matters for both the openness of the income elite and the share of total income that this group receives. It is thus an important complement information to the growing snapshot literature on top income concentration. I use microlevel panel data of German income tax files that is highly representative for top income households. Top income mobility is assessed in four dimensions: (i) its stability over time, (ii) the degree of mobility between top income fractiles, (iii) the degree of mobility between equally sized groups and mobility in ranks, both of which do not depend on fractile sizes, and (iv) mobility's impact on distributional results. Mobility in terms of annual fractile changes is high between the richest top income fractiles, which is primarily due to tiny fractile sizes. When the fractiles' sizes are controlled for, top income recipients' mobility is lower than that of lower income tax units.

Suggested Citation

  • Jenderny, Katharina, 2013. "Mobility of top incomes in Germany," Discussion Papers 2013/7, Free University Berlin, School of Business & Economics.
  • Handle: RePEc:zbw:fubsbe:20137
    as

    Download full text from publisher

    File URL: https://www.econstor.eu/bitstream/10419/74792/1/749578963.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Björklund, Anders & Roine, Jesper & Waldenström, Daniel, 2012. "Intergenerational top income mobility in Sweden: Capitalist dynasties in the land of equal opportunity?," Journal of Public Economics, Elsevier, vol. 96(5), pages 474-484.
    2. Corneo, Giacomo, 2006. "Media capture in a democracy: The role of wealth concentration," Journal of Public Economics, Elsevier, vol. 90(1-2), pages 37-58, January.
    3. Anthony B. Atkinson & Thomas Piketty & Emmanuel Saez, 2011. "Top Incomes in the Long Run of History," Journal of Economic Literature, American Economic Association, vol. 49(1), pages 3-71, March.
    4. Joachim Merz & Markus Zwick, 2008. "Einkommens- und Verteilungsanalyse mit dem Taxpayer-Panel – Neue Möglichkeiten und erste Ergebnisse für Selbständige als Freiberufler und Unternehmer und abhängige Beschäftigte sowie für hohe Einkomme," FFB-Discussionpaper 74, Research Institute on Professions (Forschungsinstitut Freie Berufe (FFB)), LEUPHANA University Lüneburg.
    5. Simon Kuznets & Elizabeth Jenks, 1953. "Shares of Upper Income Groups in Income and Savings (1953)," NBER Books, National Bureau of Economic Research, Inc, number kuzn53-1.
    6. Thomas Piketty & Emmanuel Saez, 2003. "Income Inequality in the United States, 1913–1998," The Quarterly Journal of Economics, Oxford University Press, vol. 118(1), pages 1-41.
    7. Jenkins, Stephen P., 2011. "Changing Fortunes: Income Mobility and Poverty Dynamics in Britain," OUP Catalogue, Oxford University Press, number 9780199226436.
    8. Roine, Jesper & Waldenstrom, Daniel, 2008. "The evolution of top incomes in an egalitarian society: Sweden, 1903-2004," Journal of Public Economics, Elsevier, vol. 92(1-2), pages 366-387, February.
    9. Simon Kuznets & Elizabeth Jenks, 1953. "Shares of Upper Income Groups in Savings," NBER Chapters, in: Shares of Upper Income Groups in Income and Savings (1953), pages 171-218, National Bureau of Economic Research, Inc.
    10. Anthony Atkinson & Thomas Piketty, 2010. "Top Incomes : A Global Perspective," PSE-Ecole d'économie de Paris (Postprint) halshs-00754875, HAL.
    11. Jesper Roine & Daniel Waldenström, 2012. "On The Role Of Capital Gains In Swedish Income Inequality," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 58(3), pages 569-587, September.
    12. Martin Biewen & Andos Juhasz, 2012. "Understanding Rising Income Inequality in Germany, 1999/2000–2005/2006," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 58(4), pages 622-647, December.
    13. Timothy Besley & Andrea Prat, 2006. "Handcuffs for the Grabbing Hand? Media Capture and Government Accountability," American Economic Review, American Economic Association, vol. 96(3), pages 720-736, June.
    14. D'Agostino, Marcello & Dardanoni, Valentino, 2009. "The measurement of rank mobility," Journal of Economic Theory, Elsevier, vol. 144(4), pages 1783-1803, July.
    15. Auten, Gerald & Gee, Geoffrey, 2009. "Income Mobility in the United States: New Evidence From Income Tax Data," National Tax Journal, National Tax Association;National Tax Journal, vol. 62(2), pages 301-328, June.
    16. Chul-In Lee & Gary Solon, 2009. "Trends in Intergenerational Income Mobility," The Review of Economics and Statistics, MIT Press, vol. 91(4), pages 766-772, November.
    17. A. B. Atkinson & S. Voitchovsky, 2011. "The Distribution of Top Earnings in the UK since the Second World War," Economica, London School of Economics and Political Science, vol. 78(311), pages 440-459, July.
    18. Anthony Atkinson & Thomas Piketty, 2007. "Top incomes over the twentieth century: A contrast between continental european and english-speaking countries," Post-Print halshs-00754859, HAL.
    19. Stefan Bach & Giacomo Corneo & Viktor Steiner, 2013. "Effective Taxation of Top Incomes in Germany," German Economic Review, Verein für Socialpolitik, vol. 14(2), pages 115-137, May.
    20. Emmanuel Saez & Michael R. Veall, 2005. "The Evolution of High Incomes in Northern America: Lessons from Canadian Evidence," American Economic Review, American Economic Association, vol. 95(3), pages 831-849, June.
    21. Alberto F. Alesina & Paola Giuliano, 2009. "Preferences for Redistribution," NBER Working Papers 14825, National Bureau of Economic Research, Inc.
    22. Anthony B. Atkinson & Wiemer Salverda, 2005. "Top Incomes In The Netherlands And The United Kingdom Over The 20th Century," Journal of the European Economic Association, MIT Press, vol. 3(4), pages 883-913, June.
    23. Shorrocks, Anthony, 1978. "Income inequality and income mobility," Journal of Economic Theory, Elsevier, vol. 19(2), pages 376-393, December.
    24. Atkinson, A. B. & Piketty, Thomas (ed.), 2010. "Top Incomes: A Global Perspective," OUP Catalogue, Oxford University Press, number 9780199286898.
    25. Fabien Dell, 2005. "Top Incomes in Germany and Switzerland Over the Twentieth Century," Journal of the European Economic Association, MIT Press, vol. 3(2-3), pages 412-421, 04/05.
    26. Fabien Dell, 2005. "Top Incomes in Germany and Switzerland over the Twentieh Century," Post-Print hal-00813565, HAL.
    27. Bartels, Charlotte & Jenderny, Katharina, 2014. "The role of capital income for top incomes shares in Germany," Discussion Papers 2014/32, Free University Berlin, School of Business & Economics.
    28. Facundo Alvaredo & Anthony B. Atkinson & Thomas Piketty & Emmanuel Saez, 2013. "The Top 1 Percent in International and Historical Perspective," Journal of Economic Perspectives, American Economic Association, vol. 27(3), pages 3-20, Summer.
    29. Solon, Gary, 1992. "Intergenerational Income Mobility in the United States," American Economic Review, American Economic Association, vol. 82(3), pages 393-408, June.
    30. Stefan Bach & Giacomo Corneo & Viktor Steiner, 2009. "From Bottom To Top: The Entire Income Distribution In Germany, 1992–2003," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 55(2), pages 303-330, June.
    31. Shlomo Yitzhaki, 1979. "Relative Deprivation and the Gini Coefficient," The Quarterly Journal of Economics, Oxford University Press, vol. 93(2), pages 321-324.
    32. Rosen, Sherwin, 1981. "The Economics of Superstars," American Economic Review, American Economic Association, vol. 71(5), pages 845-858, December.
    33. Thomas Piketty, 2003. "Income Inequality in France, 1901-1998," Journal of Political Economy, University of Chicago Press, vol. 111(5), pages 1004-1042, October.
    34. Atkinson, A. B. & Piketty, Thomas (ed.), 2007. "Top Incomes Over the Twentieth Century: A Contrast Between Continental European and English-Speaking Countries," OUP Catalogue, Oxford University Press, number 9780199286881.
    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. Gabriel Burdín & Mauricio de Rosa & Andrea Vigorito & Joan Vilá, 2019. "Was falling inequality in all Latin American countries a data-driven illusion? Income distribution and mobility patterns in Uruguay 2009-2016," Documentos de Trabajo (working papers) 19-30, Instituto de Economia - IECON.
    2. Markus Jäntti & Stephen P. Jenkins, 2013. "Income Mobility," SOEPpapers on Multidisciplinary Panel Data Research 607, DIW Berlin, The German Socio-Economic Panel (SOEP).
    3. Corneo Giacomo, 2015. "Kreuz und quer durch die deutsche Einkommensverteilung," Perspektiven der Wirtschaftspolitik, De Gruyter, vol. 16(2), pages 109-126, June.
    4. Isabel Z. Martínez, 2021. "Evidence from Unique Swiss Tax Data on the Composition and Joint Distribution of Income and Wealth," NBER Chapters, in: Measuring Distribution and Mobility of Income and Wealth, National Bureau of Economic Research, Inc.
    5. Fairfield, Tasha & Jorratt, Michel, 2014. "Top income shares, business profits, and effective tax rates in contemporary Chile," LSE Research Online Documents on Economics 56016, London School of Economics and Political Science, LSE Library.
    6. Terhi Ravaska, 2018. "Top incomes and income dynamics from a gender perspective: Evidence from Finland 1995–2012," Working Papers 321, Palkansaajien tutkimuslaitos, Labour Institute for Economic Research.
    7. Liliana Cano, 2015. "Income Mobility in Ecuador: New Evidence from Individual Income Tax Returns," WIDER Working Paper Series wp-2015-040, World Institute for Development Economic Research (UNU-WIDER).
    8. Terhi Ravaska, 2018. "Top incomes and income dynamics from a gender perspective: Evidence from Finland 1995-2012," Working Papers 469, ECINEQ, Society for the Study of Economic Inequality.
    9. Liliana Cano, 2015. "Income mobility in Ecuador: New evidence from individual income tax returns," WIDER Working Paper Series 040, World Institute for Development Economic Research (UNU-WIDER).
    10. David (David Patrick) Madden, 2019. "BMI Mobility and Obesity Transitions Among Children in Ireland," Working Papers 201922, School of Economics, University College Dublin.
    11. Ravaska Terhi, 2018. "Top incomes and income dynamics from a gender perspective : Evidence from Finland 1995-2012," Working Papers 1822, Tampere University, School of Management and Business, Economics.
    12. Frank T Denton & Byron G Spencer & Terry A Yip, 2019. "Age-Income Dynamics Over The Life Course: Cohort Transition Patterns In Relative Income Based On Canadian Tax Returns," Department of Economics Working Papers 2019-02, McMaster University.

    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. Anthony B. Atkinson & Thomas Piketty & Emmanuel Saez, 2011. "Top Incomes in the Long Run of History," Journal of Economic Literature, American Economic Association, vol. 49(1), pages 3-71, March.
    2. Christoph A. Schaltegger & Christoph Gorgas, 2011. "The Evolution of Top Incomes in Switzerland over the 20th Century," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), vol. 147(IV), pages 479-519, December.
    3. Bukowski, Pawel & Novokmet, Filip, 2019. "Between communism and capitalism: long-term inequality in Poland, 1892-2015," LSE Research Online Documents on Economics 102814, London School of Economics and Political Science, LSE Library.
    4. Pawel Bukowski & Filip Novokmet, 2019. "Between communism and capitalism: long-term inequality in Poland, 1892-2015," CEP Discussion Papers dp1628, Centre for Economic Performance, LSE.
    5. Antoine Bozio & Bertrand Garbinti & Jonathan Goupille-Lebret & Malka Guillot & Thomas Piketty, 2020. "Predistribution vs. Redistribution: Evidence from France and the U.S," Institut des Politiques Publiques halshs-03022092, HAL.
    6. Boschini, Anne & Gunnarsson, Kristin & Roine, Jesper, 2017. "Women in Top Incomes – Evidence from Sweden 1974-2013," Working Paper Series 5/2017, Stockholm University, Swedish Institute for Social Research.
    7. Pawel Bukowski & Filip Novokmet, 2019. "Between Communism and Capitalism: Long-Term Inequality in Poland, 1892- 2015," World Inequality Lab Working Papers hal-02876995, HAL.
    8. Rolf Aaberge & François Bourguignon & Andrea Brandolini & Francisco H. G. Ferreira & Janet C. Gornick & John Hills & Markus Jäntti & Stephen P. Jenkins & Eric Marlier & John Micklewright & Brian Nolan, 2017. "Tony Atkinson and his Legacy," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 63(3), pages 411-444, September.
    9. Antoine Bozio & Bertrand Garbinti & Jonathan Goupille-Lebret & Malka Guillot & Thomas Piketty, 2018. "Inequality and Redistribution in France, 1990-2018: Evidence from Post-Tax Distributional National Accounts (DINA)," Working Papers hal-02878151, HAL.
    10. Liliana Cano, 2015. "Income Mobility in Ecuador: New Evidence from Individual Income Tax Returns," WIDER Working Paper Series wp-2015-040, World Institute for Development Economic Research (UNU-WIDER).
    11. Roman Bobilev & Anne Boschini & Jesper Roine, 2020. "Women in the Top of the Income Distribution: What Can We Learn From LIS-Data?," Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, Springer;Società Italiana degli Economisti (Italian Economic Association), vol. 6(1), pages 63-107, March.
    12. Bukowski, Pawel & Novokmet, Filip, 2019. "Between communism and capitalism: long-term inequality in Poland, 1892-2015," LSE Research Online Documents on Economics 102834, London School of Economics and Political Science, LSE Library.
    13. Kleven, Henrik J. & Luttmer, Erzo F.P., 2018. "A special issue of the Journal of Public Economics: Honoring the work of Sir Anthony B. Atkinson (1944–2017)," Journal of Public Economics, Elsevier, vol. 162(C), pages 1-3.
    14. Pawel Bukowski & Filip Novokmet, 2019. "Between Communism and Capitalism: Long-Term Inequality in Poland, 1892- 2015," Working Papers hal-02876995, HAL.
    15. Jordá, Vanesa & Niño-Zarazúa, Miguel, 2019. "Global inequality: How large is the effect of top incomes?," World Development, Elsevier, vol. 123(C), pages 1-1.
    16. Markus Jäntti & Stephen P. Jenkins, 2013. "Income Mobility," SOEPpapers on Multidisciplinary Panel Data Research 607, DIW Berlin, The German Socio-Economic Panel (SOEP).
    17. H. Xavier Jara & Nicolás Oliva, 2018. "Top income adjustments and tax reforms in Ecuador," WIDER Working Paper Series wp-2018-165, World Institute for Development Economic Research (UNU-WIDER).
    18. Facundo Alvaredo & Lucas Chancel & Thomas Piketty & Emmanuel Saez & Gabriel Zucman, 2017. "Global Inequality Dynamics: New Findings from WID.world," American Economic Review, American Economic Association, vol. 107(5), pages 404-409, May.
    19. Tuominen Elina, 2016. "Reversal of the Kuznets curve: Study on the inequality–development relation using top income shares data," Working Papers 1610, Tampere University, School of Management and Business, Economics.
    20. Paweł Bukowski & Filip Novokmet, 2021. "Between communism and capitalism: long-term inequality in Poland, 1892–2015," Journal of Economic Growth, Springer, vol. 26(2), pages 187-239, June.

    More about this item

    Keywords

    income distribution; inequality; top incomes;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:zbw:fubsbe:20137. 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/fwfubde.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: ZBW - Leibniz Information Centre for Economics (email available below). General contact details of provider: https://edirc.repec.org/data/fwfubde.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.