Inequality Trends in the Context of Changes in Labor Market Outcomes, Composition and Redistribution in Germany
INSTITUTIONS ACROSS THE WORLD
Key Messages
- We examine how inequality evolved in Germany during the 1983-2020 period
- Labor market participation of women increased significantly, while average weekly working hours of women changed little
- Gender differences in earnings are still pervasive and more pronounced for individuals with children
- Inequality in earnings and disposable household income increased from the 1990s until 2005
- Since then, inequality in earnings has decreased, despite labor force compositional changes, such as high rates of net migration, that tend to push up inequality
With ongoing demographic and economic changes, documenting the distribution of economic resources within a society is a recurring task for applied economic research that can never be considered complete. In Germany, several studies have investigated trends in earnings and income inequality in the past few years. However, a recent and comprehensive account of inequality in Germany that also considers dimensions other than earnings and income inequality is currently not available. This article documents the development of inequalities in Germany over the years from 1983 to 2020.
Maximilian Blömer, Elena Herold, Max Lay, Andreas Peichl, Ann-Christin Rathje, Paul Schüle and Anne Steuernagel: “Inequality Trends in the Context of Changes in Labor Market Outcomes, Composition and Redistribution in Germany,” EconPol Forum 25 (2), CESifo, Munich, 2024.