Income Polarisation in Germany Is Rising

Income disparities between poorer and richer households in Germany have been widening since reunification. Although this income polarisation is reduced during economically favourable periods by strong growth in employment, once the good times are over, it rises all the faster. The longer-term trend not only shows that the number of poorer households is steadily increasing, but also that on average they are getting poorer. On the flip side, the trend is toward an increasing number of richer individuals, whose average wealth is steadily increasing. This contrast is not only felt to be highly unfair, but also creates uncertainty among the middle class. Although the year of the financial crisis, 2009, saw the number of high-income households decrease, the average incomes of the remaining rich households continued to rise. As a result of job market measures, the lower income bracket has scarcely been affected by the financial and economic crisis.Income polarization, Middle class, SOEP

Deindustrialization and Tertiarization and the Polarization of Household Incomes: The Example of German Agglomerations

Deindustrialization and Tertiarization and the Polarization of Household Incomes: The Example of German Agglomerations The deindustrialization of the economy has left deep scars on cities. It is evident not only in the industrial wastelands and empty factory buildings scattered throughout the urban landscape, but also in the income and social structures of cities. Industrialization, collective wage setting, and the welfare state led to a reduction in income differences over the course of the twentieth century. Conversely, deindustrialization and the shift from primary and secondary to tertiary sectors could result in increasing wage differentiation, especially in agglomerations. Not only is this predicted by economic theory; numerous studies on global cities (Sassen), the dual city (Mollenkopf/Castells), and divided cities (Fainstein et al.) have also identified income polarization as a central phenomenon in the development of major cities. Up to now there has been no systematic statistical analysis of the development of income structures in cities by regional comparison. This is primarily due to the lack of appropriate data for most countries. The present analysis uses a unified German database for comparison of income polarization: the Socio-Economic Panel (SOEP). To enable estimation of the statistical significance of the results, we use different indices of polarization, such as the Reynal-Querol-Index and the Esteban-Ray-Index on the regional level. The tertiarization in Germany since the 1990s has been accompanied by an increasing polarization of household income structures. In agglomerations, this income polarization is even more pronounced than in the more rural regions. Income polarization increased especially rapidly in the period between 2000 and 2006. During this period, not only did the number of households at the extremes of the income distribution increase steadily, but also: "the rich got richer" and "the poor got poorer." The income polarization in Germany is likely to have multiple causes, some of which are directly linked to policies such as the deregulation of the labor market. But extensive deindustrialization has also probably led directly to the weakening of middle income groups, which include many skilled workers. The overall decline in polarization with the renewed growth in manufacturing since 2006 also points in this direction. As a result of this growth, East German conurbations (Berlin, Leipzig, Dresden) have been able to avoid further widening of the income gap. In the West German agglomerations, however, which show a much higher rate of tertiarization, the income polarization has continued increasing

Sozialstruktur, Lebenslagen und Lebenszufriedenheit in den Programmgebieten der Sozialen Stadt

Machbarkeitsstudie zu den Auswertungspotentialen des SOEP im Auftrag des Bundesinstituts für Bau-, Stadt- und Raumforschung

Income Polarisation in Germany Is Rising

Income disparities between poorer and richer households in Germany have been widening since reunification. Although this income polarisation is reduced during economically favourable periods by strong growth in employment, once the good times are over, it rises all the faster. The longer-term trend not only shows that the number of poorer households is steadily increasing, but also that on average they are getting poorer. On the flip side, the trend is toward an increasing number of richer individuals, whose average wealth is steadily increasing. This contrast is not only felt to be highly unfair, but also creates uncertainty among the middle class. Although the year of the financial crisis, 2009, saw the number of high-income households decrease, the average incomes of the remaining rich households continued to rise. As a result of job market measures, the lower income bracket has scarcely been affected by the financial and economic crisis

Polarisierung der Einkommen: die Mittelschicht verliert

Die Einkommensgegensätze zwischen ärmeren und reicheren Haushalten nehmen in Deutschland seit der Wiedervereinigung zu. Zwar reduziert sich diese Einkommenspolarisierung in konjunkturell günstigen Phasen mit starken Beschäftigungszuwächsen. Danach aber steigt sie umso schneller wieder an. Im längerfristigen Trend ist einerseits nicht nur die Zahl der ärmeren Haushalte stetig gewachsen - sie wurden im Durchschnitt auch immer ärmer. Auf der anderen Seite gibt es im Trend immer mehr Reichere, die im Durchschnitt auch immer reicher werden. Dieser Gegensatz wird von den Menschen nicht nur als besonders ungerecht empfunden, sondern er schürt auch die Verunsicherung der Mittelschicht. Im Krisenjahr 2009 nahm zwar der Anteil der Haushalte mit hohen Einkommen ab. Das Durchschnittseinkommen der verbliebenen reichen Haushalte aber stieg weiter. Im unteren Einkommensbereich wirkte sich auch dank der unterstützenden Arbeitsmarktmaßnahmen die Finanz- und Wirtschaftkrise bislang kaum negativ aus

Polarisierung der Einkommen: die Mittelschicht verliert

Die Einkommensgegensätze zwischen ärmeren und reicheren Haushalten nehmen in Deutschland seit der Wiedervereinigung zu. Zwar reduziert sich diese Einkommenspolarisierung in konjunkturell günstigen Phasen mit starken Beschäftigungszuwächsen. Danach aber steigt sie umso schneller wieder an. Im längerfristigen Trend ist einerseits nicht nur die Zahl der ärmeren Haushalte stetig gewachsen - sie wurden im Durchschnitt auch immer ärmer. Auf der anderen Seite gibt es im Trend immer mehr Reichere, die im Durchschnitt auch immer reicher werden. Dieser Gegensatz wird von den Menschen nicht nur als besonders ungerecht empfunden, sondern er schürt auch die Verunsicherung der Mittelschicht. Im Krisenjahr 2009 nahm zwar der Anteil der Haushalte mit hohen Einkommen ab. Das Durchschnittseinkommen der verbliebenen reichen Haushalte aber stieg weiter. Im unteren Einkommensbereich wirkte sich auch dank der unterstützenden Arbeitsmarktmaßnahmen die Finanz- und Wirtschaftkrise bislang kaum negativ aus.Income polarization, Middle class, SOEP