There is by now a vast number of studies which document a sharp increase in crosssectional wage inequality during the … 2000s. It is often assumed that this inequality is of a "permanent nature" which in turn is used as an argument calling for … inequality during the 2000s. Applying covariance structure models, we calculate the fraction of permanent and transitory wage and …

I propose a method to decompose changes in income inequality into the contributions of policy changes, wage rate … apply this method to decompose the increase in income inequality in Germany from 2002 to 2011, a period that saw tax … inequality reducing effect as measured by the Mean Log Deviation and the Gini coefficient. For the Gini, these effects are offset …

Several studies have shown that income inequality has risen in Germany until 2005. Less focus was put on the rise of … earnings inequality which continued to rise until 2010. We distinguish different groups in the labour market with respect to …. Using the decomposition of the Theil1-index we demonstrate that the increase in earnings inequality is primarily the result …

. We find evidence that the overall inequality of earnings in Germany has been rising throughout the period due to both … higher permanent inequality and higher volatility. However, taking the welfare state and its institutions into account, we …