Regional Income Inequality in Germany

EconPol Forum
| News

Income inequality has increased in Germany. A new analysis shows that in 1998, the richest 10 percent of taxpayers earned 33.8 percent of total income. In 2016, that figure rose to 37.2 percent. Over the same period, the poorest 50 percent’s share of income fell from 19.3 percent to 15.9 percent. Differences in income within municipalities account for more than 95 percent of national inequality. On average, incomes in municipalities in western Germany are less equally distributed than in eastern Germany. Moreover, there are also differences between different cities. Inequality is most pronounced in municipalities in Baden-Württemberg and least pronounced in Thuringia. Compared to other countries, inequality between regions in Germany is currently rather moderate, but the degree of inequality within cities and municipalities is growing.