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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

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

Perception and Reality: Inequality and Unemployment in Germany

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

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Current trends and challenges for distribution policy
Judith Niehues / Maximilian Stockhausen IW-Report No. 49 17. December 2024

IW Distribution Report 2024: Current trends and challenges for distribution policy

The coronavirus pandemic, the energy price crisis and the associated high inflation rates have left their marks. The fall in real wages up to the beginning of 2023 has offset some of the real wage growth of previous years: on average for 2023, the real wage ...

IW

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Thomas Obst / Maximilian Stockhausen IW-Analyse No. 155 9. January 2024

A Macroeconomic Analysis of Wage-Price Spirals

The subject of this Analysis is the forms that wage-price spirals can take and how they influence macroeconomic stability and inflationary trends in Germany.

IW

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