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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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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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Explaining Rising Income Inequality in Germany, 1991-2010
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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.