SOEP Research: Inequality and Mobility

Assessing the Measurement Quality of Justice Evaluations of Earnings in Europe

How individuals perceive the fairness of their pay carries profound implications for individuals and society. Perceptions of pay injustice are linked to a spectrum of negative outcomes, including diminished well-being, poor health, increased stress, and depressive symptoms, alongside various detrimental effects in the work domain. Despite the far-reaching impact of these justice evaluations, validity ...

Women’s Labour Market Attachment and the Gender Wealth Gap

This article examines the evolution of the gender wealth gap in Germanyduring the first decade of the XXI century. This period is characterized byan increase in labour supply of women and change in occupational structure dueto numerous reforms undertaken by the government. We use the Firpo, Fortin,Lemieux detailed decomposition technique throughout the wealth distribution toidentify the main factors ...

Income, Work, and Health Satisfaction Differ Primarily by Household Income, Age, and Parental Status

Subjective well-being is essential for both quality of life and a healthy society. Studies have shown that satisfied people have better relationships, are more productive, and have a longer life expectancy. General life satisfaction is being discussed as an alternative measure of prosperity beyond GDP. Thus, findings on this topic are relevant for both the scientific community as well as policymakers. ...

How Do My Earnings Compare? Pay Referents and Just Earnings

Comparisons are crucial in shaping evaluations of one’s own position. Following this notion, we investigated the role of historical, financial, partner, occupational, and regional pay referents in predicting the just gross hourly earnings in a representative sample of German workers. Looking at this broad range of pay referents, we find that higher reference earnings were generally associated with ...

The Distribution of National Income in Germany, 1992-2019

This paper analyzes the distribution and composition of pre-tax national income in Germany since 1992, combining personal income tax returns, household survey data, and national accounts. Inequality rose from the 1990s to the late 2000s due to falling labor incomes among the bottom 50% and rising incomes in the top 10%. This trend reversed after 2007 as labor incomes across the bottom 90% increased. ...

Does Cognitive Reflection Relate to Preferences and Socio-Economic Outcomes?

Cognitive abilities are associated with key preferences and socio-economic outcomes. One of the most frequently studied cognitive abilities is cognitive reflection, the ability to avoid intuitive but potentially wrong decisions by switching to a more analytical mindset. Using rich panel data in this pre-registered study, we show that stronger cognitive reflection is significantly associated with more ...

De-Routinization of Jobs and the Distribution Of Earnings: A Cross-Country Comparison

The Routine-Biased Technological Change hypothesis (RBTC) by Autor et al. (2023) suggests that automation processes have substituted workers operating middle-skilled routine tasks. As a result, the relative demand for complementary workers operating non-routine tasks has increased. These changes in the labor force composition imply job polarization, characterized by a growing proportion of both high- ...

Born in the Land of Milk and Honey: Hometown Growth and Individual Wealth Accumulation

How does economic growth affect the distribution of wealth? Combining wealth records from the Socio-Economic Panel (SOEP) and local GDP growth across 401 German counties, this paper documents a sizable Hometown-Growth-Wealth Nexus. Using a standard OLG model to guide our estimation strategy, we nd that, because of hometown growth, a person born in flourishing Munich will have accumulated two to three ...

Share of refugees in Germany who are sending remittances abroad is declining

Refugees Send Remittances Abroad Less Often than Other Migrants

Remittances sent by refugees to their home countries has been a hotly debated policy topic in Germany over the past years and has led to the introduction of a payment card for asylum applicants. This Weekly Report investigates how the share of people living in Germany who send remittances abroad has changed over time according to their migration background (with or without a refugee background) and ...