The Evolution of Income Inequality in Germany and Switzerland Since the Turn of the Millennium

25 Pages Posted: 18 Aug 2012

See all articles by Markus Grabka

Markus Grabka

German Institute for Economic Research (DIW Berlin)

Ursina Kuhn

Swiss Centre of Expertise in the Social Sciences (FORS)

Date Written: August 2012

Abstract

This paper presents and compares trends in income inequality in Switzerland and Germany from 2000 to 2009 using harmonized data from the Socio-Economic Panel (SOEP) and the Swiss Household Panel (SHP). Whereas in Germany inequality has increased substantially during this period, in Switzerland inequality in market incomes has increased only marginally and inequality in disposable incomes has decreased slightly. Economic and demographic indicators suggest that labor market participation — but not economic growth, globalization, or sectoral change — are potential explanations. The decomposition of inequality reveals the effects of Germany’s slightly older population and smaller household sizes, as well as the impact of educational expansion and government redistribution.

Keywords: income inequality, subgroup decomposition, income stratification, income mobility, SOEP, SHP

JEL Classification: I31, D31

Suggested Citation

Grabka, Markus and Kuhn, Ursina, The Evolution of Income Inequality in Germany and Switzerland Since the Turn of the Millennium (August 2012). SOEPpaper No. 464, Available at SSRN: https://ssrn.com/abstract=2131220 or http://dx.doi.org/10.2139/ssrn.2131220

Markus Grabka (Contact Author)

German Institute for Economic Research (DIW Berlin) ( email )

Mohrenstrasse 58
SOEP
D-10117 Berlin
Germany
+49-30-89789-339 (Phone)
+49-30-89789-109 (Fax)

Ursina Kuhn

Swiss Centre of Expertise in the Social Sciences (FORS) ( email )

Bâtiment Géopolis, 5th floor
Lausanne, CH-1015
Switzerland

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
80
Abstract Views
564
rank
370,213
PlumX Metrics