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Regional Income Stratification in Unified Germany Using a Gini Decomposition Approach

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  • Joachim Frick
  • Jan Goebel

Abstract

Frick J. R. and Goebel J. Regional income stratification in unified Germany using a Gini decomposition approach, Regional Studies. Using representative micro data from the German Socio-Economic Panel Study (SOEP), this paper delivers new insights into the development of income inequality and regional stratification in Germany after unification. This paper applies a new method for detecting social stratification by a decomposition of the Gini index that yields the obligatory between- and within-group components as well as an 'overlapping' index for the different sub-populations. It is found that East Germany is still a stratum on its own when using post-government income, but since 2001 no longer is when using pre-government income. These results remain stable when using alternatively defined regional classifications. However, there are also indications of some regional variation within West Germany. [image omitted] Frick J. R. et Goebel J. Les tranches de revenu regional dans l'Allemagne unifiee employant une decomposition Gini, Regional Studies. A partir des donnees microeconomiques provenant de la Socio-Economic Panel Study (SOEP - enquete permanente socio-economique) menee en Allemagne, cet article cherche a fournir de nouvelles perspectives sur le developpement des inegalites de salaire et des tranches de revenu regional en Allemagne au lendemain de l'unification. On applique une nouvelle methode qui permet de deceler les couches sociales par la decomposition de l'indice Gini qui fournit les necessairs elements intragroupe et intergroupe ainsi qu'une indice “chevauchante” pour les differentes sous-categories de la population. A partir de la dotation globale de fonctionnement, il s'avere que l'est de l'Allemagne reste toujours une couche a part entiere mais, depuis 2001, il ne l'est plus quand on considere les ressources propres. A partir d'autres classements regionaux, ces resultats restent inchanges. Cependant, il s'avere une certaine variation regionale dans l'est de l'Allemagne. Inegalite Decomposition Gini Tranches Unification allemande Ecarts regionaux SOEP Frick J. R. und Goebel J. Regionale Einkommeusstratifizietung im wiedervereinigten Deutschland mit Hilfe eines Gini-Dekompositionsansatzes, Regional Studies. Mit Hilfe reprasentativer Mikrodaten des soziookonomischen Panels fur Deutschland (SOEP) werden in diesem Beitrag neue Einblicke in das Entstehen eines Einkommensungleichgewichts und einer regionalen Stratifizierung in Deutschland nach der Wiedervereinigung geliefert. Wir nutzen eine neue Methode zur Erkennung von sozialer Stratifizierung mit Hilfe einer Dekomposition des GINI-Indexes, was zu den obligatorischen Komponenten zwischen und innerhalb von Gruppen sowie zu einem, uberlappunge-Index fur die verschiedenen Subpopulationen fuhrt. Nach unseren Ergebnissen stellt Ostdeutschland weiterhin eine eigenstandige Schicht dar, wenn man vom Einkommen unter Berucksichtigung aller staatlichen Transfers ('post-government income') ausgeht, hingegen seit 2001 nicht mehr, wenn man das Einkommen ohne diese Transfers ('pre-government income') untersucht. Diese Ergebnisse bleiben auch bei Verwendung unterschiedlich definierter regionaler Klassifikationen stabil. Allerdings gibt es auch innerhalb von Westdeutschland Anzeichen einer gewissen regionalen variation. Dekomposition von Ungleichgewicht Gini Stratifikation Deutsche Wiedervereinigung Regionale Disparitaten SOEP Frick J. R. y Goebel J. Estratificacion de ingresos regionales en la Alemania unificada usando un enfoque de descomposicion del indice Gini, Regional Studies. Con ayuda de micro datos representativos de un estudio de panel socioeconomico aleman, en este articulo aportamos nuevas perspectivas sobre el desarrollo de desigualdades de ingresos y estratificacion regional en Alemania tras la unificacion. Empleamos un nuevo metodo para detectar la estratificacion social mediante una descomposicion del indice GINI que produce los componentes obligatorios entre y dentro de los grupos asi como un indice de 'solapamiento' para las diferentes subpoblaciones. Al analizar los ingresos posgubernamentales observamos que Alemania del este es todavia un estrato en si pero deja de serlo a partir de 2001 si estudiamos los ingresos pregubernamentales. Estos resultados siguen siendo estables al utilizar clasificaciones regionales definidas de forma alternativa. Sin embargo, tambien hay indicios de cierta variacion regional dentro de Alemania del oeste. Descomposicion de las desigualdades Gini Estratificacion Alemania unificada Disparidades regionales Panel socioeconomico aleman

Suggested Citation

  • Joachim Frick & Jan Goebel, 2008. "Regional Income Stratification in Unified Germany Using a Gini Decomposition Approach," Regional Studies, Taylor & Francis Journals, vol. 42(4), pages 555-577.
    • Handle: RePEc:taf:regstd:v:42:y:2008:i:4:p:555-577
    DOI: 10.1080/00343400701543181
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    2. Robbert Maseland, 2014. "Does Germany have an East-West Problem? Regional Growth Patterns in Germany since Reunification," Regional Studies, Taylor & Francis Journals, vol. 48(7), pages 1161-1175, July.
    3. Bruckmeier, Kerstin & Schwengler, Barbara, 2009. "The impact of federal social policies on spatial income inequalities in Germany : empirical evidence from social security data," IAB-Discussion Paper 200901, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    4. Shlomo Yitzhaki & Edna Schechtman, 2009. "The “melting pot”: A success story?," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 7(2), pages 137-151, June.
    5. Anoop S. Kumar & P. Yazir & G. G. Gopika, 2019. "Consumption Inequality In India After Liberalization: A Caste Based Assessment," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 64(01), pages 139-155, March.
    6. Andreas Peichl & Nico Pestel & Hilmar Schneider, 2012. "Does Size Matter? The Impact Of Changes In Household Structure On Income Distribution In Germany," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 58(1), pages 118-141, March.
    7. Nora Würz & Timo Schmid & Nikos Tzavidis, 2022. "Estimating regional income indicators under transformations and access to limited population auxiliary information," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 185(4), pages 1679-1706, October.
    8. Luis Ayala & Javier Martín‐Román & Juan Vicente, 2020. "The contribution of the spatial dimension to inequality: A counterfactual analysis for OECD countries," Papers in Regional Science, Wiley Blackwell, vol. 99(3), pages 447-477, June.
    9. Gundi Knies & C. Katharina Spieß, 2007. "Regional Data in the German Socio-Economic Panel Study (SOEP)," Data Documentation 17, DIW Berlin, German Institute for Economic Research.
    10. Giovanni Maria Giorgi & Alessio Guandalini, 2016. "Bonferroni Index Decomposition And The Shapley Method," RIEDS - Rivista Italiana di Economia, Demografia e Statistica - The Italian Journal of Economic, Demographic and Statistical Studies, SIEDS Societa' Italiana di Economia Demografia e Statistica, vol. 70(4), pages 67-78, October-D.
    11. Giovanni M. Giorgi & Alessio Guandalini, 2018. "Decomposing the Bonferroni Inequality Index by Subgroups: Shapley Value and Balance of Inequality," Econometrics, MDPI, vol. 6(2), pages 1-16, April.
    12. Rainer, Helmut & Siedler, Thomas, 2009. "Does democracy foster trust?," Journal of Comparative Economics, Elsevier, vol. 37(2), pages 251-269, June.
    13. Sander Wagner, 2017. "Children of the Reunification: Gendered Effects on Intergenerational Mobility in Germany," Working Papers 2017-03, Center for Research in Economics and Statistics.
    14. Ruoff, Bea., 2016. "Labour market developments in Germany : tales of decency and stability," ILO Working Papers 994899913402676, International Labour Organization.
    15. Ruoff, Bea, 2016. "Labour market developments in Germany: Tales of decency and stability," GLU Working Papers 39, Global Labour University (GLU).
    16. Denis Gerstorf & Nilam Ram & Jan Goebel & Jürgen Schupp & Ulman Lindenberger & Gert G. Wagner, 2010. "Where People Live and Die Makes a Difference: Individual and Geographic Disparities in Well-Being Progression at the End of Life," SOEPpapers on Multidisciplinary Panel Data Research 287, DIW Berlin, The German Socio-Economic Panel (SOEP).
    17. Gertrudes das Dores Lopes Saúde Guerreiro, 2012. "Regional Income Distribution in Portugal," CEFAGE-UE Working Papers 2012_06, University of Evora, CEFAGE-UE (Portugal).
    18. Gerasimova, Irina, 2009. "Sources of Income as a Factor of Interregional Social Economic Differentiation of the Russia’s Population (1995-2007)," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 16(4), pages 60-84.
    19. Linda Hoffmann & Alexandra Wicht, 2023. "»Should I Stay or Should I Go?« Prevalence and Predictors of Spatial Mobility among Youth in the Transition to Vocational Education and Training in Germany," Social Sciences, MDPI, vol. 12(5), pages 1-21, May.
    20. Aviad Tur-Sinai, 2019. "Is a Municipal Boundary a Good Stratification Variable?," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 144(3), pages 1075-1098, August.
    21. Süß Philipp, 2020. "Regional Market Income Inequality and its Impact on Crime in Germany: A Spatial Panel Data Approach with Local Spillovers," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 240(4), pages 387-415, August.

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    Keywords

    C81; D31; D63;
    All these keywords.

    JEL classification:

    • C81 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Methodology for Collecting, Estimating, and Organizing Microeconomic Data; Data Access
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement

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