The state corrects the income distribution of the market by means of taxes and social transfers. But too much redistribution inhibits motivation.
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...
An International Comparison
The levies which make the greatest contribution to public revenues are income tax, value-added tax (VAT) and social insurance contributions. While income tax in Germany is charged on a progressive...
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...
From the middle of the 1990s inequality in Germany seemed to be increasing inexorably. Recently, however, the income gap has closed again somewhat.
Senior Economist for Financial Policy and Tax Policy
Tel+49 221 4981-736
Leiterin der Forschungsgruppe Mikrodaten und Methodenentwicklung
Tel+49 221 4981-768
Economist for Income and Wealth Distribution
Tel+49 221 4981-862