Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/150752 
Year of Publication: 
2009
Series/Report no.: 
SOEPpapers on Multidisciplinary Panel Data Research No. 205
Publisher: 
Deutsches Institut für Wirtschaftsforschung (DIW), Berlin
Abstract: 
In Germany, two observations can be tracked over the past 15 to 20 years: First, income inequality has constantly increased while, second, the average household size has been declining dramatically. The analysis of income distribution relies on equivalence-weighted incomes, which take into account household size. Therefore, there is an obvious link between these two developments. The aim of the paper is to quantify how the trend towards smaller households has influenced the change in income inequality. It appears that inequality would also have increased without this demographic trend. But its level would be noticeably lower than it actually is.
Subjects: 
Demography
income inequality
inequality decomposition
household structure
SOEP
Germany
JEL: 
D31
D63
I30
J11
Document Type: 
Working Paper

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