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Redistribution and Insurance in the German Welfare State

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Bartels, C. Redistribution and Insurance in the German Welfare State. Journal of Contextual Economics – Schmollers Jahrbuch, 132(2), 265-295. https://doi.org/10.3790/schm.132.2.265
Bartels, Charlotte "Redistribution and Insurance in the German Welfare State" Journal of Contextual Economics – Schmollers Jahrbuch 132.2, 2012, 265-295. https://doi.org/10.3790/schm.132.2.265
Bartels, Charlotte (2012): Redistribution and Insurance in the German Welfare State, in: Journal of Contextual Economics – Schmollers Jahrbuch, vol. 132, iss. 2, 265-295, [online] https://doi.org/10.3790/schm.132.2.265

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Redistribution and Insurance in the German Welfare State

Bartels, Charlotte

Journal of Contextual Economics – Schmollers Jahrbuch, Vol. 132 (2012), Iss. 2 : pp. 265–295

3 Citations (CrossRef)

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Charlotte Bartels, Freie Universität Berlin, Institut für öffentliche Finanzen und Sozialpolitik, Boltzmannstraße 20, 14195 Berlin.

Cited By

  1. Insurance, Redistribution, and the Inequality of Lifetime Income

    Haan, Peter | Kemptner, Daniel | Prowse, Victoria L.

    SSRN Electronic Journal , Vol. (2017), Iss.

    https://doi.org/10.2139/ssrn.3109312 [Citations: 6]
  2. A Quantum of Solace – An Examination of the Voluntary Extended Unemployment Insurance for the Self-employed in Germany

    Wießner, Frank | Evers, Katalin | Schleinkofer, Michael

    Sozialer Fortschritt, Vol. 65 (2016), Iss. 7 P.171

    https://doi.org/10.3790/sfo.65.7.171 [Citations: 1]
  3. Redistribution and Insurance in Welfare States around the World

    Bartels, Charlotte | Neumann, Dirk

    SSRN Electronic Journal , Vol. (2018), Iss.

    https://doi.org/10.2139/ssrn.3280184 [Citations: 1]

Abstract

Welfare states redistribute both between individuals reducing annual inequality and over the life-cycle insuring against income risks. But studies measuring redistribution often focus only on a one-year period. Using German SOEP data from 1984 to 2009, long-term inequality over a 20-year period is computed and then decomposed into an inter-and intra-individual component. Results show that annual inequality is higher than long-term inequality, but redistribution is also larger from an annual perspective. In the long-term, the German welfare state clearly prioritizes insurance over redistribution. This gets even more pronounced at later stages of the life-cycle through the payment of social security pensions.