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Einkommen immer ungleicher verteilt. WSI-Verteilungsbericht 2019

Dorothee Spannagel and Katharina Molitor

WSI-Mitteilungen, 2019, vol. 72, issue 6, 440-450

Abstract: The annual WSI report on the distribution of income and wealth gives evidence that income inequality in Germany is continuing to rise. At the core is the question of how inequality has developed since the steep rise at the start of the 2000s, a topic that is widely debated. Based on analysis of data from the GSOEP it is shown that income distribution remained fairly stable between 2005 and 2010 but after 2010 a marked rise in inequality is to be observed. This development has taken place despite good economic conditions and a very favourable labour market situation. The analyses reveal that the recent increase in income inequality is caused by developments at the margins of the distribution. In order to prevent further deterioration and to ward off a deep division in society, we have to draw on these findings: Households at the top end of the income distribution have to increase their contributions to redistribution. In order to fully integrate those households at the bottom end of the scale into society, we have to increase the statutory minimum wage as well as to strengthen collective wage agreements and to change labour market policies.

Date: 2019
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DOI: 10.5771/0342-300X-2019-6-440

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