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Holger Schäfer / Jörg Schmidt / Christoph Schröder IW-Trends No. 1 25. March 2013 Wage and Income Mobility in Germany

Causes, Interdependences and Empirical Findings

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Wage and Income Mobility in Germany
Holger Schäfer / Jörg Schmidt / Christoph Schröder IW-Trends No. 1 25. March 2013

Wage and Income Mobility in Germany

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German Economic Institute (IW) German Economic Institute (IW)

Causes, Interdependences and Empirical Findings

While wage mobility in Germany has remained constant over time, income mobility has tended to decline. Nevertheless, every third advance in income level stems from a change in wage level. The overall decline in income mobility is evident in almost all types of household and also is largely independent of employment status. However, within the last few years those entering or returning to the labour market have been able to buck the downward trend. For both earnings and equivalised incomes, a high level of education leads to an increased chance of advancement and to a reduced danger of falling back. The chances of advancement are most improved by taking up gainful employment after a period without it. In this respect, there has been no substantial change since 2005. In addition the influence of wage mobility on income mobility has not significantly weakened since the middle of the 2000s.

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Wage and Income Mobility in Germany
Holger Schäfer / Jörg Schmidt / Christoph Schröder IW-Trends No. 1 25. March 2013

Wage and Income Mobility in Germany

Download PDF

German Economic Institute (IW) German Economic Institute (IW)

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Michael Hüther / Judith Niehues External Publication 8. June 2022

Perception and Reality: Inequality and Unemployment in Germany

Data for the time before the corona pandemic reveal a largely positive picture of the economic and social development in Germany. Most individuals perceived their own situation as very positive, but their views on society are rather pessimistic and overly ...

IW

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Judith Niehues / Maximilian Stockhausen IW-Trends No. 2 16. May 2022

A Focus on the Middle Class - Demarcation, Development and Mobility

In 2018, roughly every second German was a member of the middle class as measured by income, a proportion which has barely changed for more than a decade. However, the lower income threshold of this middle-income group has risen - an indication of increased ...

IW

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