Has Income Inequality Spiked in Germany?

DIW Weekly Report 12 / 2012, S. 3-14

Markus M. Grabka, Jan Goebel, Jürgen Schupp

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New analyses of personal income distribution in Germany, based on data from the German Socio-Economic Panel (SOEP), show that real market income in private households rose significantly from 2005 to 2010. An increase in real disposable income was also observed. At the same time, income inequality decreased in both western and eastern Germany. However, the latter showed a further spread at the lower end of disposable income distribution. In the course of this development, the poverty risk in western Germany fell slightly from 2009 to 2010, while it remained unchanged in the eastern part of the country.

Markus M. Grabka

Direktorium SOEP und kommissarische Bereichsleitung Wissenstransfer in the German Socio-Economic Panel study Department

Jürgen Schupp

Wissenschaftler in the German Socio-Economic Panel study Department

JEL-Classification: D31;I31;I32
Keywords: income inequality, poverty risk, SOEP
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