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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 critical.

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Inequality and Unemployment in Germany
Michael Hüther / Judith Niehues External Publication 8. June 2022

Perception and Reality: Inequality and Unemployment in Germany

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

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 critical.

Contrasting abstract redistributive preferences with prevailing norms of justice reveals further inconsistencies. Thus, it is increasingly unlikely that policymakers can adequately address the concerns and wishes of the population. The pronounced discrepancy between empirical findings on distributional aspects and citizens’ perceptions constitutes a veritable problem for democratic processes. That is because this discrepancy is the basis for mistrust between citizens (principals) and politics (agents). Therefore, it becomes increasingly important that politicians explain the logic of their actions in an understandable way. An important prerequisite for more communicable politics is a comprehensive infrastructure for research data that enables politicians, the media, and the public to make valid assessments.

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Inequality and Unemployment in Germany
Michael Hüther / Judith Niehues External Publication 8. June 2022

Perception and Reality: Inequality and Unemployment in Germany

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

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Influence of structural changes on income distribution
Maximilian Stockhausen IW-Report No. 63 26. November 2022

IW Distribution Report 2022: Influence of structural changes on income distribution

Academization, immigration and demographic change are defining issues of our time and influence the distribution of income. This year's report therefore focuses on the question of which long-term structural changes in the net income distribution are associated ...

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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