The state corrects the income distribution of the market by means of taxes and social transfers. But too much redistribution inhibits motivation.
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Survey data suggest that a majority of Germans want the government to reduce income disparities. This subjective preference for redistribution has increased markedly in the past decade, regardless of the actual development of distribution ratios, which have hardly changed since 2005.
Analyses of income distribution are currently high on the agenda. Quite often the results of different studies are named in the same breath or mixed in media reports. Though it is rather difficult to reconcile the different findings without considerable explanation. Sometimes the results are even contradictory.
Demographic transformation is taking to absurd lengths the risk equalisation between young and old incorporated into Germany’s statutory health insurance system. Despite increasing average expenditure...
An International Comparison
Using European microdata, this study shows the redistribution effects of levies and mone-tary social transfers in Germany and the other Member States of the EU. The results indicate that income...
Senior Economist for Financial Policy and Tax Policy
Tel+49 221 4981-736
Mailbeznoska@iwkoeln.de
@mbeznoska
Head of the Research Group Microdata and Method Development
Tel+49 221 4981-768
Mailniehues@iwkoeln.de
Economist for Income and Wealth Distribution
Tel+49 221 4981-862
Mailstockhausen@iwkoeln.de
@StockhausenEcon
