SOEP Research: Inequality and Mobility

Income Inequality Remains High in Germany: Young Singles and Career Entrants Increasingly at Risk of Poverty

According to calculations based on the Socio-Economic Panel (SOEP) study, average disposable household income rose by five percent in real terms between 2000 and 2012. Only the highest earners have benefited from this development. While real income in the top ten percent rose by more than 15 percent, the earnings of the middle income groups stagnated, and even fell in the lower income groups. As a ...

Income Inequality Remains High: Eight Questions to Markus Grabka

Evaluating the Minimum Wage Introduction in Germany (EVA-MIN)

Innovative Knowledge Transfer and Evidence-Based EvaluationHow the new minimum wage legislation, which goes into effect on January 1, 2015, is an open question. It is thus all the more important that the effects of the new minimum wage should be evaluated scientifically, for which this project will provide an important database. Researchers from the Socio-Economic Panel (SOEP) research...

Measuring Transnationality of Immigrants in Germany: Prevalence and Relationship with Social Inequalities

The scope of immigrants' transnational ties and the relationship to their social position is subject to a controversial debate that suggests a dualistic picture. On the one hand, globalization theorists argue that an elite of highly educated and economically most successful professionals intensively engages in and benefits from transnationality. On the other hand, most scholars in migration and assimilation ...

Tax and Transfer System: Considerable Redistribution Mainly via Social Insurance

Overall monetary redistribution via the tax and transfer system leads to net incomes being much more evenly distributed in Germany than market income. As a result, in 2011, the Gini coefficient decreased from 0.5 for market income to 0.29 for household disposable income. The social security system has a significant share in total income redistribution by the government, making up more than half of ...

Income and Wealth Inequality after the Financial Crisis: The Case of Germany

The topic of rising income inequality does not only gain in relevance since the two prominent reports by the OECD (Growing unequal? Income Distribution and Poverty in OECD Countries, Paris 2008; Divided we stand—Why inequality keeps rising, Paris 2011) but rather since the financial crisis. So far there is only scarce empirical evidence–besides a rather broad literature dealing with the US–about the ...

Real Net Worth of Households in Germany Fell between 2003 and 2013

Studies indicating the development of household wealth in Germany are typically based on nominal values and do not take account of price rises and thus the actual purchasing power of those assets. DIW Berlin took inflation into account in a recent evaluation and concluded that the average net worth of households in Germany decreased in real terms by almost 15 percent from 2003 to 2013. This figure, ...

German Investment Behavior Contributes to Real Losses in Net Worth of Households: Six Questions to Markus Grabka

Longitudinal Wealth Data and Multiple Imputation: An Evaluation Study

Statistical Analysis in surveys is generally facing missing data. In longitudinal studies for some missing values there might be past or future data points available. The question arises how to successfully transform this advantage into improvedimputation strategies. In a simulation study the authors compare six combinations of cross‐sectional and longitudinal imputation strategies for German wealth ...

Significant Statistical Uncertainty over Share of High Net Worth Households

The analyses of wealth inequality based on survey data usually suffer from undercoverage of the upper percentiles of the very wealthy. Yet given this group’s substantial share of total net worth, it is of particular relevance. As no tax data are available in Germany, the largest fortunes can only be simulated using “rich lists.” For example, combining the Forbes list, with its approximately 50 German ...