Work package 10: Development of income and wealth distribution

In work package 10 “Development of income and wealth distribution” (Irene Becker, Empirical Distribution Research) an approach introduced in soeb 2 will be further pursued. Based on the Income and Consumption Survey (EVS) and the Socio-Economic Panel (SOEP), the distribution-analyses in the scope of soeb 3 present the development of income inequality on all stages of primary and secondary distribution, i.e. market revenues (such as gross hourly earnings and monthly salary), enhanced market income (including pensions), and market and net equivalent income. This shows redistributive effects of the social security system and of private households. A modified income- and asset concept allows for comparison between different sections of the workforce, concerning their social security expenses. Essential societal developments, which influence distribution items, are systematically included into the analysis as societal frame of welfare production.

The analytical approach will be enhanced in two ways according to the Stiglitz-Sen-Fitoussi-report (2009):

  • including steps for the required integrated analysis of income and wealth distribution,
  • including data concerning inequality of consumer opportunities and of the actual consumption (class-specific structures of expenditure, availability of durable commodities, saving); these results will be presented in the context of division 5 (WP 16) of soeb 3.

Furthermore, the question must be evaluated as to whether the currently used statistical model for setting the socio-cultural minimum of existence is truly effective in securing societal minimum standards of participation for the section of the population at risk of poverty, when inequality of income distribution and consumption patterns increases.

Two additional modules address methodological issues of distribution analysis which influence the level of proven inequality indicators and poverty rate:

  • Estimation of over- and under-representation of individual groups or types of income in the household surveys EVS and SOEP,
  • Alternative approaches for dealing with missing income data of individual household members (so called partial unit nonresponse and item nonresponse).

Work package 10: Development of income and wealth distribution

In work package 10 “Development of income and wealth distribution” (Irene Becker, Empirical Distribution Research) an approach introduced in soeb 2 will be further pursued. Based on the Income and Consumption Survey (EVS) and the Socio-Economic Panel (SOEP), the distribution-analyses in the scope of soeb 3 present the development of income inequality on all stages of primary and secondary distribution, i.e. market revenues (such as gross hourly earnings and monthly salary), enhanced market income (including pensions), and market and net equivalent income. This shows redistributive effects of the social security system and of private households. A modified income- and asset concept allows for comparison between different sections of the workforce, concerning their social security expenses. Essential societal developments, which influence distribution items, are systematically included into the analysis as societal frame of welfare production.

The analytical approach will be enhanced in two ways according to the Stiglitz-Sen-Fitoussi-report (2009):

  • including steps for the required integrated analysis of income and wealth distribution,
  • including data concerning inequality of consumer opportunities and of the actual consumption (class-specific structures of expenditure, availability of durable commodities, saving); these results will be presented in the context of division 5 (WP 16) of soeb 3.

Furthermore, the question must be evaluated as to whether the currently used statistical model for setting the socio-cultural minimum of existence is truly effective in securing societal minimum standards of participation for the section of the population at risk of poverty, when inequality of income distribution and consumption patterns increases.

Two additional modules address methodological issues of distribution analysis which influence the level of proven inequality indicators and poverty rate:

  • Estimation of over- and under-representation of individual groups or types of income in the household surveys EVS and SOEP,
  • Alternative approaches for dealing with missing income data of individual household members (so called partial unit nonresponse and item nonresponse).

Researcher

Dr. Irene Becker (Empirical Distribution Research)

 
Results (German)
Becker, Irene: EVS und SOEP: methodische Aspekte bei Verteilungsanalysen. soeb-Working-Paper 2014-3. PDF
Vorträge
Becker, Irene (2015): Mindestbedarfe von Kindern in verschiedenen Rechtsgebieten - das soziokulturelle Existenzminimum gemäß SGB II als Leitfaden auf der Fachtagung zum Thema „Wieviel brauchen Kinder? Gleiches Existenzminimum für alle!" des Zukunftsforums Familie e. V. am 07.09.2015 in Berlin PDF
Becker, Irene (2014): „Das Grundsicherungsniveau im Spiegel der Verteilung und normativer Setzungen“. Vortrag am 08.04.2014 auf der Fachtagung zum Thema „Wie viel braucht der Mensch zum Leben?“/ Hans-Böckler-Stiftung, DGB PDF
Poster
Poster 13: Einkommen und Vermögen: Trend zu mehr Ungleichheit hält an. PDF