Work

The distribution of national income in Germany, 1992–2019

Year: 2025

Type: article

Abstract: This paper estimates and analyzes the distribution and composition of pre-tax national income in Germany since reunification, combining personal income tax returns, household survey data, and national accounts. We find that pre-tax national income inequality has increased since the 1990s, though to a lesser extent than suggested by previous studies. Our results draw parallels in top income structure and concentration to the United States: Half of the top 1% earners are non-corporate business owners in labor-intensive professions contrasting with corporate top incomes in France. Also the concentration of pre-tax national income in Germany is similar to the United States and higher than in France.

Source: European Economic Review

DOI: 10.1016/j.euroecorev.2025.105149

Authors: Stefan Bach, Charlotte Bartels, Theresa Neef

Institutions: German Institute for Economic Research, Centre for Economic Policy Research, Leipzig University, Halle Institute for Economic Research

Language: English

Topic: Income, Poverty, and Inequality

Subfield: Sociology and Political Science

Field: Social Sciences

Domain: Social Sciences

SDG: Reduced inequalities

Open Access status: hybrid

Estimated APC paid: $3,690