Transitioning Towards More Equality? Wealth Gender Differences and the Changing Role of Explanatory Factors Over Time.

Luxembourg Institute of Socio-Economic Research (LISER) Working Paper Series 2018-18

40 Pages Posted: 14 Dec 2018 Last revised: 17 Dec 2018

See all articles by Eva Sierminska

Eva Sierminska

LISER; DIW Berlin - German Socio-Economic Panel Study (SOEP); IZA Institute of Labor Economics

Daniela Piazzalunga

FBK-IRVAPP

Markus Grabka

German Institute for Economic Research (DIW Berlin)

Multiple version iconThere are 2 versions of this paper

Date Written: October 25, 2018

Abstract

We investigate the explanatory factors that have contributed to changing wealth levels and the gender wealth gap in Germany over the period 2002-2012. In particular, we analyze the role of changes in labor supply, permanent income, portfolio composition, and marital status on wealth accumulation. Using individual level micro data from the German Socio-Economic Panel results show that real mean wealth levels for the working age population have been decreasing for both women and men since 2002 and that the wealth gap has decreased by 13.5% to 30.700€. We show that the increased participation of women in the labor market and their occupational structure had an increasing positive role on women’s wealth accumulation. Making use of the panel dimension in the data and of Oaxaca-Blinder and Firpo, Fortin, Lemieux decompositions, in comparison to previous analyses, a diminishing role of permanent income is observed, due both to a reduction in the gender difference in permanent income and in gender differences in its returns. Overall, the evidence points to more equal wealth accumulation both in terms of characteristics and returns.

Keywords: Wealth Differences, Gender, SOEP, Decomposition, Labor Supply, Occupations

JEL Classification: D13, D31

Suggested Citation

Sierminska, Eva and Piazzalunga, Daniela and Grabka, Markus, Transitioning Towards More Equality? Wealth Gender Differences and the Changing Role of Explanatory Factors Over Time. (October 25, 2018). Luxembourg Institute of Socio-Economic Research (LISER) Working Paper Series 2018-18, Available at SSRN: https://ssrn.com/abstract=3289078 or http://dx.doi.org/10.2139/ssrn.3289078

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Markus Grabka

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