Search

The recent COVID-19 pandemic uncovered some already existing but somewhat hidden inequalities in different countries. Many features of inequalities that pre-existed the COVID-19 pandemic for a long time were uncovered due to this radical shift in living arrangements globally. This paper focuses on one particular feature of these inequalities: housing situation of one Iranian asylum seeker in a heim (refugee accommodation) in Germany. Contributing to an understanding of how political resistance can be exercised through personal biographies, the paper differentiates between the notion of 'unhome' from home by discussing three factors: choice, anchor and the significant of others. The paper contributes to the growing scholarships around home in migration and its intersection with personal narratives. [ABSTRACT FROM AUTHOR]

We provide a comprehensive analysis of income inequality and income dynamics for Germany over the last two decades. Combining personal income tax and social security data allows us--for the first time--to offer a complete picture of the distribution of annual earnings in Germany. We find that cross-sectional inequality rose until 2009 for men and women. After the Great Recession, inequality continued to rise at a slower rate for men and fell slightly for women due to compression at the lower tail. We further document substantial gender differences in average earnings and inequality over the life cycle. While for men earnings rise and inequality falls as they grow older, many women reduce working hours when starting a family such that average earnings fall and inequality increases. Men's earnings changes are on average smaller than women's but are substantially more affected by the business cycle. During the Great Recession, men's earnings losses become magnified and gains are attenuated. Apart from recession years, earnings changes are significantly right-skewed reflecting the good overall state of the German labor market and increasing labor supply. In the second part of the paper, we study the distribution of total income including incomes of self-employed, business owners, and landlords. We find that total inequality increased significantly more than earnings inequality. Regarding income dynamics, entrepreneurs' income changes are more dispersed, less skewed, less leptokurtic, and less dependent on average past income than workers' income changes. Finally, we find that top income earners have become less likely to fall out of the top 1 and 0.1%. [ABSTRACT FROM AUTHOR]

The highly dynamic nature of the COVID-19 crisis poses an unprecedented challenge to policy makers around the world to take appropriate income-stabilizing countermeasures. To properly design such policy measures, it is important to quantify their effects in real-time. However, data on the relevant outcomes at the micro level is usually only available with considerable time lags. In this paper, we propose a novel method to assess the distributional consequences of macroeconomic shocks and policy responses in real-time and provide the first application to Germany in the context of the COVID-19 pandemic. Specifically, our approach combines different economic models estimated on firm- and household-level data: a VAR-model for output expectations, a structural labor demand model, and a tax-benefit microsimulation model. Our findings show that as of September 2020 the COVID-19 shock translates into a noticeable reduction in gross labor income across the entire income distribution. However, the tax benefit system and discretionary policy responses to the crisis act as important income stabilizers, since the effect on the distribution of disposable household incomes turns progressive: the bottom two deciles actually gain income, the middle deciles are hardly affected, and only the upper deciles lose income. [ABSTRACT FROM AUTHOR]

The inheritance tax is often seen as an effective tool to reduce wealth inequality, to raise public revenues if needed, and to increase incentives to work by lowering the tax burden on labour, which is especially high in Germany, according to the OECD. The purpose of this paper is therefore to shed light on the question of whether an inheritance tax is a promising tool for fighting wealth inequality without having distorting effects on the economy. For this purpose, firstly, the distributional effects of inheritances on wealth distribution are evaluated for Germany and are then compared with those in Austria and France, using data from the Household Finance and Consumption Survey (HFCS). A change in the German inheritance tax law in 2009 is further used in a difference-in-difference analysis to identify the behavioural effects of the change in the inheritance tax on the volume of bequests, which are large and robust for different specifications. Secondly, the insight from part one is applied to the design of an inheritance tax reform for Germany. The potential tax revenue of the reform can be estimated by using the data from the inheritance and gift tax statistics. A revenue shift from income to inheritance tax could be used to increase work incentives by cutting the marginal tax rates for the working population. However, it turns out that taxing inheritances will be accompanied by significant behavioural responses of donors via tax planning. Furthermore, the introduction of a flat tax model with a broad tax base would not generate enough additional revenue to foster relevant employment effects. [ABSTRACT FROM AUTHOR]

Background: This study aimed to examine time trends in physical working conditions across and within occupational groups in Germany between 2006 and 2018. Methods: Logistic regression analyses were conducted using data from the BIBB/BAuA Employment Surveys in 2006, 2012, and 2018, with a total sample size of 59,006 participants. The study investigated changes in various self-reported occupational exposure measures over time, along with demographic shifts in the workforce. Results: The results showed overall improvements in most occupational exposure measures during the study period, alongside an aging and upskilling workforce. However, exposure to awkward postures, microorganisms, and, to a lesser extent, noise increased. Substantial variation was observed between occupational groups, with more favourable trends among white-collar high-skilled and blue-collar low-skilled workers, and less favourable trends among white-collar low-skilled and blue-collar high-skilled workers. Conclusions: While trends in physical working conditions in Germany are partly promising, some exposures are worsening, and substantial inequalities between occupations persist. As occupational exposures remain common, there is still a need for targeted interventions to improve working conditions, particularly in higher-risk occupations. [ABSTRACT FROM AUTHOR]

Prior research has shown that students from lower socio-economic backgrounds are less likely to graduate. We examine if this can be explained by background-specific pathways into higher education. Many students in Germany enter higher education with a vocational qualification and prior vocational qualifications occur more often among students from lower socio-economic backgrounds. We argue that vocational qualifications shift opportunity structures and opportunity costs of students who have to decide between continuing higher education and alternative options. We therefore examine if parental background and vocational qualifications are associated with the destinations after non-completion. We distinguish the destinations "re-entering higher education", "vocational training" and "skilled employment". Using the German Educational Panel Study (NEPS starting cohort 6), we apply competing risks models. Our results show that non-completers from higher socio-economic backgrounds are more likely to re-enter higher education than non-completers from lower socio-economic backgrounds. The higher rates of transfer to skilled employment among non-completers from lower backgrounds are mainly due to the fact that they more often hold a vocational qualification and have good chances to enter the skilled labour market without additional educational investments. Our results hence shed some new light on the question how vocational training "diverts" lower background students from higher education. [ABSTRACT FROM AUTHOR]

This paper studies the relationships between annual and subannual inequality and mobility during the course of the year. We apply an exact decomposition framework as outlined in Wodon and Yitzhaki (Econ Bull 4:1-8, ), and in Yitzhaki and Wodon (Research on Economic Inequality 12:179-199, ). Earnings records of pension insurants in Germany serve as the database. The long time horizon of our database allows us to investigate the stability and robustness of the parameters of the decomposition over time. Specifically, we show that the mobility component of the decomposition, as measured by Gini correlation coefficients, changes over the observation period. This makes it difficult to predict the impact of the income accounting period on inequality in a more general context. Thus, it is of paramount importance to use income data from a uniform accounting period in distributional analyses. [ABSTRACT FROM AUTHOR]

This paper analyses the contribution of capital income to income inequality in a cross-national comparison. Using micro-data from the Cross-National Equivalent File (CNEF) for three prominent panel studies, namely the BHPS for the UK, the SOEP for West Germany, and the PSID for the USA, we use the factor decomposition method described by Shorrocks (Econometrica 50:193-211, ). The factor decomposition of disposable income into single income components shows that capital income is exceedingly volatile and that its share in disposable income has risen recent years. Moreover, capital income makes a disproportionately high contribution to overall inequality in relation to its share in disposable income. This applies to Germany and the USA in particular. Thus capital income accounts for a large part of disparity in all three countries. [ABSTRACT FROM AUTHOR]

The extension of late working life has been proposed as a potential remedy for the challenges of aging societies. For Germany, surprisingly little is known about trends and social inequalities in the length of late working life. We use data from the German Microcensus to estimate working life expectancy from age 55 onward for the 1941-1955 birth cohorts. We adjust our calculations of working life expectancy for working hours and present results for western and eastern Germany by gender, education, and occupation. While working life expectancy has increased across cohorts, we find strong regional and socioeconomic disparities. Decomposition analyses show that among males, socioeconomic differences are predominantly driven by variation in employment rates; among women, variation in both employment rates and working hours are highly relevant. Older eastern German women have longer working lives than older western German women, which is likely attributable to the German Democratic Republic legacy of high female employment. [ABSTRACT FROM AUTHOR]

To examine the relationship between regional socioeconomic deprivation and adherence to the 24-h movement guidelines among children and adolescents, a cross-sectional study was conducted. A total of 17,433 students aged 9–17 participated in a survey in winter 2021/2022. Daily screen time (ST), moderate-to-vigorous physical activity (MVPA), and sleep behavior were outcome variables. The German Index of Socioeconomic Deprivation (GISD), a regional socioeconomic objective measure, was the exposure variable. Associations between GISD and health behaviors were examined using regression models. Models were adjusted for age, gender, school type, and individual self-reported socioeconomic status (SES). The proportions of meeting the MVPA, ST, and sleep duration guidelines were 14%, 22%, and 34%, respectively. A total of 2.3% met all guidelines. Students from the most deprived communities were half as likely to meet all three guidelines compared to students from the most affluent regions (OR = 0.49 [0.28; −0.03], p = 0.010). There was a consistent relationship between GISD and lower levels of adherence to screen time guidelines (most deprived compared to most affluent: OR = 0.49 [0.38; 0.64], p < 0.001). There was no association between GISD and adherence to sleep time guidelines. We found mixed results for the association between GISD and MVPA. Regional SES appears to be an important factor associated with screen time. Screen time should be limited through intervention programs, especially in disadvantaged areas. Parents should be made aware of their children's increased media consumption. Recommendations for screen time should be clearly communicated, as should the health disadvantages of increased media consumption in childhood and adolescence. [ABSTRACT FROM AUTHOR]

Die Zahl der Privatschüler*innen steigt in Deutschland stetig, insbesondere in Ostdeutschland. Besonders häufig kommen sie aus Haushalten mit hohem Einkommen und hohem Bildungs niveau. Dieser Wochenbericht untersucht, welche Rolle die räumliche Verteilung von Privatschulen für die Struktur der Schüler*innenschaft spielt. In einem ersten Schritt wird untersucht, in welchen Gegenden es Privatschulen gibt. Dabei zeigt sich, dass Privatschulen in Ostdeutschland geografisch breiter und zufälliger verteilt sind als in Westdeutschland – esgibt sie also nicht nur dort, wo vor allem privilegierte Haushalte wohnen. In einem zweiten Schritt wird untersucht, ob die geografische Nähe zu einer Privatschule den Besuch selbiger wahrscheinlicher macht. Es zeigt sich, dass das bei einkommensstarken und bildungsnahen Haushalten der Fall ist. Einkommensschwache und bildungsferne Haushalte schicken ihre Kinder hingegen auch dann nicht häufiger auf eine Privatschule, wenn sie in deren Nähe wohnen. Offenbar stellen private Schulen für sie meistens keine Alternative dar. Wie weitere Analysen zeigen, ist dies auch, aber nicht allein durch das Schulgeld zu erklären. Nötig sind daher unter anderem zugänglichere Informationen über Privatschulen. Diese könnten stärker öffentlich gefördert werden – letztlich müssen aber auch öffentliche Schulen für privilegierte Haushalte attraktiver werden, um soziale Unterschiede mit Blick auf die Schulwahl zu reduzieren. [ABSTRACT FROM AUTHOR]

Are children better off than their parents? This highly debated question in politics and economics is investigated by analysing the trends in absolute and relative intergenerational labour income mobility for Germany and the US. High quality panel data is used for this purpose; the SOEP for Germany and the PSID for the US. In Germany, 67% of sons born between 1955 and 1975 earned a significantly higher real long-run labour income than their fathers. Those with fathers from the lowest earnings bracket were particularly mobile in absolute terms. In contrast, the fraction of US sons earning more than their fathers is 60% on average for the same cohorts. Their share decreased from 66% in the 1956–60 birth cohort to 48% in the 1971–75 birth cohort, while it changed very little in Germany. Overall, absolute as well as relative labour income mobility is larger in Germany than in the US. This indicates that economic growth has been distributed more broadly in Germany than in the US. While the majority of German males has been able to share in the country's rising prosperity and are better off than their fathers, US males continue to lose ground. Hence, Chetty et al. (Science 356:398–406, 2017) seem to be right when they say that the American Dream is slowly fading away. [ABSTRACT FROM AUTHOR]

Background: Inequalities in health and wealth distributions are becoming pressing societal problems in many countries. How these inequalities are perceived and to what degree perceptions are aligned with actual distributions, is important for trust in public health services, social and economic policies, and policymakers. This study aims to assess perceived and desired levels of inequality in health and wealth in Germany and the UK.Methods: The online-survey was filled out by 769 volunteers (322 from Germany, 447 from the UK), recruited from an existing commercial panel (Prolific Academic) or via Facebook advertisements in 2019. Perceived and ideal national health and wealth distributions were assessed and compared to actual health indicators (i.e. days absent from work, number of visits to general practitioners (GPs) and self-rated health), and actual wealth distributions with t-tests.Results: A pronounced gap emerged between the estimated, ideal and actual inequality. Both samples strikingly underestimated the proportion of (very) good health in the national distribution by a factor of ~ 2.3 (participants estimated that 34% of the German and 36% of the UK population respectively are very healthy or healthy, while the actual proportion in the population was 75% in Germany and 84% in the UK, P < 0.001 for all). Moreover, actual health distributions were much closer to the desired than the perceived health distributions (78% of German and 72% of UK participants ideally being very healthy or healthy). A reversed pattern of results emerged for wealth in both samples, with wealth inequality being strikingly worse than desired and inequality being underestimated by a factor ~ 1.7 (P < 0.001 for all). Results were consistent across demographic groups.Conclusions: Respondents in both Germany and the UK have profoundly negative misperceptions regarding the distribution of health, which contrasts with starkly positive misperceptions regarding the distribution of wealth, indicating that the public is healthier but poorer than they think. More importantly, from a public health perspective, a high level of consensus emerged, with both healthy and wealthy participants misperceiving health and wealth distributions. [ABSTRACT FROM AUTHOR]

Can the rise of populism be explained by the growing chasm between rich and poor? With regard to Germany, such a causal relationship must be rejected. Income distribution in Germany has been very stable since 2005, and people's knowledge on actual inequality and economic development is limited: inequality and unemployment are massively overestimated. At the same time, a persistently isolationist and xenophobic group with diverse concerns and preferences has emerged within the middle classes of society that riggers support for populist parties. This mood is based on welfare chauvinism against immigration rather than on a general criticism of distribution. Since the immigration of recent years will inevitably affect the relevant indicators concerning distribution, an open, cautious but less heated approach is needed in the debate on the future of the welfare state. In order to address and take the local concerns of citizens seriously, an increased exchange with public officials on the ground is needed. [ABSTRACT FROM AUTHOR]

Background: Families with lower socioeconomic status (SES) often face problems with gaining access to health care services. Information is scarce on the relationship between SES and health care delivery for children suffering from chronic pain.Methods: Families presenting to a specialized pain center (N = 1,001) provided information on 'household income, 'parental education' and 'occupation' to aid the evaluation of their SES. To assess whether the SES of the clinical sample is representative of the general population, it was compared to data from a community sample (N = 14,558). For the clinical sample, travel distance to the clinic was described in relation to the 75% catchment area. Multiple logistic regression was used to analyze the association between SES and the journey from outside the catchment area.Results: The SES was significantly higher in the clinical sample than in the community sample. Within the clinical sample, the distance traveled to the pain center increased with increasing SES. The 75% catchment area was 143 miles for families with the highest SES and 78 miles for the lowest SES. 'Household income' predicted travel distance (OR 1.32 (1.12-1.56)). Education and occupational status were not significant predictors of travel from outside the catchment area.Conclusions: In Germany, specialized care for children with chronic pain is subject to disparities in access. Future activities should focus on identifying barriers to access and seeking to prevent inequalities in specialized pediatric health care delivery. Increasing the number of specialized treatment facilities could improve access to specialized pediatric pain treatment, regardless of socioeconomic determinants. [ABSTRACT FROM AUTHOR]