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Title:From Bottom to Top: The Entire Distribution of Market Income in Germany, 1992 - 2001 PDF Logo
Authors:Bach, Stefan
Corneo, Giacomo
Steiner, Viktor
Issue Date:2007
Series/Report no.:DIW-Diskussionspapiere 683
Abstract:We analyze the distribution and concentration of market incomes in Germany in the period 1992 to 2001 on the basis of an integrated data set of individual tax returns and the German Socio-Economic Panel. The unique feature of this integrated data set is that it encompasses the whole spectrum of the population, from the very poor to the very rich. We find a modest increase in overall inequality of market incomes as measured by the Gini coefficient. However, we also document a substantial drop of median income and a remarkable income growth at the top 0.1% of the income distribution. The increase of income inequality was stronger in East Germany than in West Germany. In both regions, the income concentration process strongly benefited the economic elite, which we define as the richest 0.001% persons in the population. While the elite mainly obtains its income from business and capital, the income share that it receives in form of wage income is increasing.
Subjects:Income Distribution
Top Incomes
Inequality
JEL:H24
D33
D31
Document Type:Working Paper
Appears in Collections:DIW-Diskussionspapiere
Publikationen von Forscherinnen und Forschern des DIW

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