Publications Based on SOEP Data: SOEPlit

The Benefits of Linking CGE and Microsimulation Models: Evidence from a Flat Tax Analysis

The Benefits and Problems of Linking Micro and Macro Models - Evidence from a Flat Tax Analysis

Mircrosimulation (MS) and Computable General Equilibrium models (CGE) have both been widely used in policy analysis. Their combination allows the utilisation of the advantages of both types. The aim of this paper is to describe the state-of-the-art in simulation analysis and to illustrate the benefits and problems of linking micro and macro models by analysing flat tax reform proposals for Germany. ...

The Development of Richness in Europe

In recent years, a branch of literature on the top of the (income) distribution emerged in Economics using top income shares as a measure of richness. This paper contributes to this literature by comparing different measures of richness (income shares, headcount, intensity measures). We analyse the development of various richness indices over time in Europe (and other OECDCountries) using micro data. ...

Multidimensional Measurement of Richness: Theory and an Application to Germany

Closely following recent innovations in the literature on the multidimensional measurement of poverty, this paper provides similar measures for the top of the distribution using a dual cutoff method to identify individuals, who can be considered as rich in a multidimensional setting. We use this framework to analyze the role of wealth, health and education, in addition to income, as dimensions of multidimensional ...

Multidimensional Affluence: Theory and Applications to Germany and the US

This paper suggests multidimensional affluence measures for the top of the distribution. In contrast to commonly used top income shares, they allow the analysis of the extent, intensity and breadth of affluence in several dimensions within a common framework. We illustrate this by analyzing the role of income and wealth as dimensions of multidimensional well-being in Germany and the US in 2007 as well ...

Multidimensional Well-Being at the Top: Evidence for Germany

This paper employs a multidimensional approach for the measurement of well-being at the top of the distribution using German SOEP micro data. Besides income as traditional indicator for material well-being, we include health as a proxy for nonmaterial quality of life as well as self-reported satisfaction with life as dimensions. We find that one third of the German population is well-off in at least ...

Earnings Inequality

Inequality has increased considerably in many Western countries over the past decades. When dealing with economic inequality as a research subject the question "inequality of what among whom" arises. Analyses of inequality are typically concerned with the distribution of wages, earnings or income and have been performed by different strands in the literature, mainly in public and in labor ...

Does Size Matter? The Impact of Changes in Household Structure on Income Distribution in Germany

Income inequality in Germany has been continually increasing during the past 20 years. One cause of this development, among others, could be structural shifts in household formation due to long-term societal trends. These affect per capita incomes, which has repercussions for the income distribution even if wages remain constant. The aim of this paper is to quantify the proportion of changing household ...

The Politicians’ Wage Gap: Insights from German Members of Parliament

Using a unique dataset of German members of parliament with information on total earnings including outside income, this paper analyzes the politicians’ wage gap (PWG). After controlling for observable characteristics as well as accounting for selection into politics, we find a positive PWG which is statistically and economically significant. It amounts to 40-60% compared to citizens with an executive ...

Measuring Richness and Poverty: A Micro Data Application to Europe and Germany

In this paper, we define a new class of richness measures. In contrast to the often used headcount, these new measures are sensitive to changes in rich individuals' incomes and, therefore, allow for a more sophisticated analysis of richness. We demonstrate the application of these new measures in analyzing the development of poverty and richness over time in Germany. Moreover, we compare Germany ...