Household income, poverty and wealth

This paper concentrates on official statistics on household income, poverty, and wealth. It characterizes the main research questions in this field, and it presents an overview of the available statistics and Scientific Use Files produced by the four Research Data Centers (RDC) in Germany. (RDC of the Federal Statistical Office; RDC of the Statistical Offices of the German states; RDC of the German Labor Office; RCD of the German Pension Insurance). We support the recommendations of a peer review group for the Federal Statistical Office based on the European Statistics Code of Practice, and suggest peer reviews for all data producing bodies including ministries. We repeat a recommendation of a former Commission to find ways of distributing Scientific Use Files to reliable foreign research institutes. Special recommendations refer to the improvement of survey methods and extended questionnaires of the Income and Consumption Survey (EVS) and the German contribution to the European Statistics on Income and Living Conditions (EU SILC). We also recommend a harmonization of the administrative statistics on the various minimum benefit programs, and the development of a single Scientific Use Files for all minimum benefit recipients.relevant terms to support the research via the Internet Research Data Center, Scientific Use Files, household income, wealth, minimum benefits, EVS, EU SILC.

Problems of the German Contribution to EU-SILC: A Research Perspective, Comparing EU-SILC, Microcensus and SOEP

EU-SILC will become one of the most important statistical data sources for the Federal Government's future Poverty and Wealth Reports, for comparing Germany's position with those of the other EU member states in the "open method of coordination", and for the international scientific community and international organisations. Hence this sample needs intensive quality control to ensure data quality. Ex ante quality control must take the form of selecting suitable survey methods, internal control of consistency of the data collected from each household, transparent data editing, reliable imputation methods and compensation for drop-outs by reweighting. Ex post consistency checks are needed in the form of comparison with other similar household samples, with administrative statistics and with macro-economic aggregates of the national accounts. In this paper the need for intensive ex post quality control is met with consistency checks in the form of a comparison between the results of EU-SILC and the microcensus and SOEP, which reveals significant deviations in the coverage of poorly integrated foreigners, small children and the level of education, as well as the ratio of house/apartment owners and the employment ratio. This causes serious distortions to the Laeken indicators calculated.Intergenerational Mobility, Germany

Changes in income poverty and deprivation over time : a comparison of eight European countries from the mid-eighties to the mid-nineties with special attention to the situation of the unemployed ; this paper was also published as working paper 3 of EPUSE (the employment precarity, unemployment and social exclusion project), Oxford, october 1998

All-over in Europe, unemployment became a growing problem from the mid 1980s to the mid 1990s. Nevertheless, the effects on the economical situation of the unemployed and the whole population are quite different in European countries. In this paper we first give a brief overview over the development of unemployment rates in eight member states of the European Union and over the different reactions to provide the social protection of the unemployed. Therefore we look at the social security expenditures, the level of income replacement for the unemployed and recent social policy reforms concerning them. In the second section of the paper, we examine the development of income distribution and poverty taking different poverty lines into consideration. There is no general pattern neither for the relationship of inequality among the unemployed to the whole economically active population nor for the development from the 80s to the 90s. But one can say that in countries with increasing income inequality also poverty is rising (especially in the UK) and that where inequality among the unemployed is less pronounced the proportions of the poor went down from the mid 80s to the mid 90s (France and Ireland). In nearly all countries the risk of being poor is ernormously high for the unemployed, Denmark is the only exception

The development of the income distribution in the Federal Republic of Germany during the seventies and eighties : revised version of a paper presented at the Conference "The Distribution of Economic Well-Being in the 1980s - an International Perspective", June 21 - 23, 1993, in Fiskebäckskil, Sweden

Revised version of a paper presented at the Conference "The Distribution of Economic Well-Being in the 1980s - an International Perspective", June 21 - 23, 1993, in Fiskebäckskil, Sweden. This paper sketches changes in the distribution of well-being during the period from 1972 to 1991 against the background of West Germany's economic and demographic development, and compares the distribution of well-being in East Germany before and after reunification. We rely on equivalent income of persons as the main indicator to measure well-being, but we also look at the distribution of gross wage income of workers and employees. Estimates of the Federal Statistical Office referring to the mesolevel of average equivalent income of socio-economic groups as well as various distributional measures computed by us at the micro-level are used to gauge changes of the distribution. The computations are based on two sets of micro-data available to us, the official Income and Consumption Surveys (1973, 1978 and 1983), and the German Socio-economic Panel (1983 to 1990 for West Germany, 1990, 1991 for East Germany). At the meso-level we find substantial changes in the relative welfare positions of the ten socio-economic groups distinguished, but a nearly constant ranking of the groups during the whole period under review. At the micro-level our computations indicate slight increases in the inequality of gross earnings during both decades. The distribution of well-being as measured by equivalent income of persons seems also to have become slightly more unequal during the whole period but the changes are very small, and partly reversed during subperiods. A decomposition of overall inequality by occupational status of the heads of household using the Theil measure shows that more than 80 percent of overall inequality is due to within-group inequality with rising tendency. This result is mitigated a little when dis aggregating the heterogeneous group of not gainfully employed with regard to the main income source of the household.In diesem Arbeitspapier werden Veranderungen der Wohlstandsverteilung während der Periode 1972 bis 1991 vor dem Hintergrund der ökonomischen und demographischen Entwicklung in Westdeutschland skizziert und die Wohlstandsverteilungen in Ostdeutschland vor und nach der Wiedervereinigung verglichen. Dabei beziehen wir uns hauptsächlich auf das Äquivalenzeinkommen von Personen zur Erfassung individuellen Wohlstands, untersuchen aber auch die Verteilungsentwicklung der Bruttoeinkommen aus unselbstandiger Arbeit. Die Analyse bezieht sich zum einen auf Ergebnisse des Statistischen Bundesamtes, die auf einem mittleren Aggregationsniveau durchschnittliche Aquivalenzeinkommen nach sozio-ökonomischen Gruppen ausweisen. Zum anderen werden verschiedene VerteilungsmaBe auf der Basis von Mikrodaten berechnet, wobei uns zwei Datenquellen zur Verfügung standen: die offiziellen Einkommens- und Verbrauchsstichproben (1973, 1978 und 1983) und das Sozio-ökonomische Panel (1983 bis 1990 für Westdeutschland, 1990, 1991 für Ostdeutschland).Auf mittlerem Aggregationsniveau zeigen sich wesentliche Anderungen in den relativen Wohlstandspositionen der zehn unterschiedenen sozio-ökonomischen Gruppen, aber eine nahezu unveränderte Rangfolge der Gruppen wahrend des gesamten Beobachtungszeitraums. Auf der Mikroebene zeigt sich für beide Dekaden eine leichte Zunahme der Ungleichheit der Bruttoeinkommen aus unselbstandiger Tatigkeit. Auch die am Äquivalenzeinkommen der Personen gemessene Wohlstandsverteilung scheint über die gesamte Periode etwas ungleicher geworden zu sein, wobei die Veränderungen allerdings sehr gering sind und teilweise in den beiden Dekaden entgegengesetzte Richtungen aufweisen. Aus der Dekomposition der mit dem Theil-Maß ermittelten Verteilungsungleichheit nach der sozialen Stellung des Haushaltsvorstandes ergibt sich, daB mehr als 80% der Ungleichheit insgesamt auf Intra-Gruppen-Ungleichverteilungen zurückzuführen ist, und zwar mit steigender Tendenz. Dieses Ergebnis wird etwas gemildert, wenn man die sehr heterogene Gruppe der Nichterwerbstatigenhaushalte nach der überwiegenden Einkommensart des Haushalts disaggregiert

Changes in the distribution of pre-government and post-government income in Germany 1973 - 1993 : paper presented at the Conference on the Personal Distribution of Income in an International Perspective at the Hanse Institute for Advanced Study in Delmenhorst

To sum up our findings we come to the following statements. - During the period from 1973 to 1993 inequality of the personal distribution of equivalent pre-government income increased to some extent, as was to be expected given the enormous rise in unemployment. - Inequality of post-government income also increased slightly, but was much lower than inequality of pre-government income due to the equalizing effect of the German tax and transfer system. - In 1993 inequality of pre-government income was higher, and inequality of post-government income was considerably lower in East Germany than in West Germany; the West German tax and transfer system that was transferred to East Germany after reunification - with some additional but temporary minimum regulations - seems to have had a stronger equalizing effect in the East than in the West. - A decomposition into three age groups, the young and the middle-aged group sub-divided further according to whether household members were affected by unemployment, showed that within-groups inequality explained by far more of overall inequality than between-groups inequality. - The relative positions of the two young groups as well as of the middle-aged group with unemployed members deteriorated with respect to their equivalent pre-government and post-government incomes. - During the first period with rising unemployment (1973 to 1978), the development of within-groups inequality and of between-groups inequality contributed to about the same extent to the increase of overall inequality of pre-government income. But this was fully compensated by the tax and transfer system as there were only a negligible change in inequality of equivalent net income and very slight effects of the (four) components of change which nearly compensated each other. - During the last period from 1988 to 1993 the equalizing effect of the German tax and transfer system seems to have weakened, at least in the western part of Germany. The increase in inequality of equivalent net income is mainly due to developments of within group inequalities

Die Vermögensverteilung und die Reform der gesetzlichen Rentenversicherung in der Bundesrepublik Deutschland

The structure of the compulsory pension system (CPS) in the Federal Republic of Germany has been changed fundamentally. The federal government has decided to introduce a private pension system on a voluntary basis. The payments to this voluntary system are to constitute a capital stock to supplement the payments of the compulsory pension system. Comprehensive fiscal subsidies will be introduced to support this change to the pension system. This paper discusses the special situation of families with children. The second section investigates the extent to which families with children were able to accumulate private wealth in the last ten years in Germany. In the third section the main features of the intended changes to the compulsory pension system are described, and an overview of the planned fiscal subsidies is provided. In the fourth and final section we attempt to evaluate the changes with particular attention to the situation of families.Die Struktur der Gesetzlichen Rentenversicherung (GRV) in der Bundesrepublik Deutschland ist grundsätzlich geändert worden. Die Bundesregierung hat die Einführung einer zusätzlichen privaten Alterssicherung auf freiwilliger Basis beschlossen. Hierdurch soll ein Kapitalstock gebildet werden, der die Leistungen der GRV ergänzt. Zur Förderung dieser Systemänderung der Alterssicherung werden umfangreiche fiskalische Unterstützungsmaßnahmen eingeführt. Im Rahmen des hier vorliegenden Beitrags wird auf die besondere Situation der Familien mit Kindern eingegangen. Im zweiten Abschnitt wird untersucht, inwieweit Familien mit Kindern in den letzten zehn Jahren in Deutschland in der Lage waren, privates Vermögen aufzubauen. Im dritten Abschnitt werden die beabsichtigten Änderungen des Systems der gesetzlichen Rentenversicherung in den Grundzügen dargestellt, und es wird ein Überblick über die geplanten fiskalischen Fördermaßnahmen gegeben. Im abschließenden vierten Abschnitt wird eine Bewertung der Änderungen vor allem in Bezug auf die Situation von Familien versucht

Inequality of the Distribution of Personal Wealth in Germany 1973-1998

This paper attempts to define financial globalization as a process whereby financial markets internationally are integrated so closely that they can be considered as a single market. The process, viewed as a by- product of financial liberalization, is only a necessary condition for financial globalization, however. The sufficient condition is the creation of world-wide single currency, managed and regulated by a single international monetary authority. The system itself needs to be managed carefully to avoid the kind of crises countries have experienced over the last 30 years or so. This sufficient condition has not yet been met.Personal wealth distribution, Germany, inequality, household wealth, disposable wealth of age groups, disposable wealth of pseuda- cohorts