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

45 Pages Posted: 25 Jun 2019

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)

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Abstract

The objective of the study is to investigate the changing role of explanatory factors of wealth and the gender wealth gap in Germany over the period 2002-2012 using individual level microdata from the German Socio-Economic Panel. The authors apply distributional decomposition methods and focus on the role of changes in labor supply, permanent income, portfolio composition, and marital status in this process. 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€. The growing labor market participation of women and the resulting occupational structure has a positive effect on women's wealth accumulation. In comparison to previous analyses, the authors use the panel dimension of the data and find that the role of permanent income is decreasing due to a reduction in the gender difference in permanent income and in gender differences in its returns.

Keywords: decomposition analysis, SOEP, gender, wealth differences

JEL Classification: D31, D13

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. IZA Discussion Paper No. 12404, Available at SSRN: https://ssrn.com/abstract=3408302

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