SOEP Research: Inequality and Mobility

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

European-Wide Inequality in Times of the Financial Crisis

In view of rising concerns over increasing inequality in the European Union since the financial crisis, this study provides an inequality decomposition of the overall European income distribution by country. The EU Statistics on Income and Living Conditions are our empirical basis. Inequality has risen moderately within the core Euro area, particularly in the last two years of the observation period ...

Distributional Effects of Subsidizing Retirement Savings Accounts: Evidence from Germany

We empirically investigate the distributional consequences of the Riester scheme, the main private pension subsidization program in Germany. We find that 38% of the aggregate subsidy accrues to the top two deciles of the population, but only 7.3% to the bottom two. Nonetheless the Riester scheme is almost distributionally neutral when looking at standard inequality measures. This is due to two offsetting ...

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

European-Wide Inequality in Times of the Financial Crisis

In view of rising concerns over increasing inequality in the European Union since the financial crisis, this study provides an inequality decomposition of the overall European income distribution by country. The EU Statistics on Income and Living Conditions are our empirical basis. Inequality has risen moderately within the core Euro area, particularly in the last two years of the observation period ...

Intergenerational Downward Mobility in Educational Attainment and Occupational Careers in West Germany in the Twentieth Century

What happens in the occupational careers of men if the intergenerational continuity in status reproduction is disrupted by the failure to reproduce the parental level of educational attainment? We frame this failure as a risk for intergenerational status maintenance and ask whether such a risk induces extra effort by way of compensation. By studying eight birth cohorts born between 1919 and 1971 characterized ...

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 ...

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 ...