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Income inequality and top incomes: some recent empirical developments with a focus on Germany

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  • Christina Anselmann
  • Hagen M. Kr�mer

Abstract

During the few last years, several studies have revealed that income differences have increased in a number of OECD countries. While most of the corresponding empirical analyses have focused on general trends and poverty in the past, this paper emphasizes the highest income groups. A strong increase in top income shares has recently been well documented for several English-speaking countries, especially for the United States. The present paper is mainly concerned with the developments in Germany in the past years. Using a mixture of different data, the evolution of gross and net income differences is analysed and compared with the developments in other countries. It is shown that top incomes and top income shares in Germany have increased in the recent past. Finally, some possible explanations for these developments are discussed.

Suggested Citation

  • Christina Anselmann & Hagen M. Kr�mer, 2015. "Income inequality and top incomes: some recent empirical developments with a focus on Germany," International Review of Applied Economics, Taylor & Francis Journals, vol. 29(6), pages 770-786, November.
    • Handle: RePEc:taf:irapec:v:29:y:2015:i:6:p:770-786
    DOI: 10.1080/02692171.2015.1078780
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    References listed on IDEAS

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    1. Congressional Budget Office, 2011. "Trends in the Distribution of Household Income Between 1979 and 2007," Reports 42729, Congressional Budget Office.
    2. Christina Anselmann & Hagen M. Krämer, 2012. "Completing the Bathtub?: The Development of Top Incomes in Germany, 1907-2007," SOEPpapers on Multidisciplinary Panel Data Research 451, DIW Berlin, The German Socio-Economic Panel (SOEP).
    3. Jon Bakija & Adam Cole & Bradley Heim, 2008. "Jobs and Income Growth of Top Earners and the Causes of Changing Income Inequality: Evidence from U.S. Tax Return Data," Department of Economics Working Papers 2010-22, Department of Economics, Williams College, revised Jan 2012.
    4. Congressional Budget Office, 2011. "Trends in the Distribution of Household Income Between 1979 and 2007," Reports 42729, Congressional Budget Office.
    5. Congressional Budget Office, 2011. "Trends in the Distribution of Household Income Between 1979 and 2007," Reports 42729, Congressional Budget Office.
    6. Mr. Jonathan David Ostry & Mr. Andrew Berg & Mr. Charalambos G Tsangarides, 2014. "Redistribution, Inequality, and Growth," IMF Staff Discussion Notes 2014/002, International Monetary Fund.
    7. Jonathan David Ostry & Andrew Berg & Charalambos G Tsangarides, 2014. "Redistribution, Inequality, and Growth," IMF Staff Discussion Notes 14/02, International Monetary Fund.
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    Cited by:

    1. Mark Setterfield & Y.K. Kim, 2024. "How financially fragile can households become? Household borrowing, the welfare state, and macroeconomic resilience," Review of Evolutionary Political Economy, Springer, vol. 5(1), pages 121-151, June.
    2. Mark Setterfield & Yun K Kim, 2020. "Varieties of capitalism, increasing income inequality and the sustainability of long-run growth," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 44(3), pages 559-582.

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