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Factor Shares and Income Inequality. Empiral Evidence from Germany 2002 – 2008

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Adler, M., Schmid, K. Factor Shares and Income Inequality. Empiral Evidence from Germany 2002 – 2008. Journal of Contextual Economics – Schmollers Jahrbuch, 133(2), 121-132. https://doi.org/10.3790/schm.133.2.121
Adler, Martin and Schmid, Kai Daniel "Factor Shares and Income Inequality. Empiral Evidence from Germany 2002 – 2008" Journal of Contextual Economics – Schmollers Jahrbuch 133.2, 2013, 121-132. https://doi.org/10.3790/schm.133.2.121
Adler, Martin/Schmid, Kai Daniel (2013): Factor Shares and Income Inequality. Empiral Evidence from Germany 2002 – 2008, in: Journal of Contextual Economics – Schmollers Jahrbuch, vol. 133, iss. 2, 121-132, [online] https://doi.org/10.3790/schm.133.2.121

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Factor Shares and Income Inequality. Empiral Evidence from Germany 2002 – 2008

Adler, Martin | Schmid, Kai Daniel

Journal of Contextual Economics – Schmollers Jahrbuch, Vol. 133 (2013), Iss. 2 : pp. 121–132

4 Citations (CrossRef)

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Article Details

Author Details

Martin Adler, Bahnstr. 74, 40210 Düsseldorf, Germany.

Kai Daniel Schmid, Institut für Makroökonomie und Konjunkturforschung, Hans-Böckler-Str. 39, 40467 Düsseldorf, Germany.

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Abstract

Using micro data from the German Socio-Economic Panel we examine the interplay between changes in the functional distribution of income and the distribution of market income among individuals. In particular, we categorize and evaluate the implications of changing income shares from asset flows for the concentration of market income. Our empirical analysis offers two insights: First, the relative rise of income from asset flows reported by German National Accounting Statistics is also evident in the micro data taken from the German Socio-Economic Panel. Second, rising capital income shares are associated with an increasing concentration of market income.