Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/150964
Authors: 
Bartels, Charlotte
Year of Publication: 
2011
Series/Report no.: 
SOEPpapers on Multidisciplinary Panel Data Research 419
Abstract: 
Welfare states redistribute both between individuals reducing annual inequality and over the life-cycle insuring against income risks. But studies measuring redistribution often focus only on a one-year period. Using German SOEP data from 1984 to 2009, long-term inequality over a 20-year period is computed and then decomposed into an inter- and intra-individual component. Results show that annual inequality is higher than long-term inequality, but redistribution is also larger annually. In the long-term, the German welfare state clearly gives priority to insurance over redistribution. This gets even more pronounced at later stages of the life-cycle through the payment of social security pensions.
Subjects: 
Long-term income inequality
Income redistribution
Social security
JEL: 
D31
D63
H53
H55
Document Type: 
Working Paper

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