We study the relationships, for the case of Germany, between inequality in the annual earnings distribution, and subannual inequality and mobility during the course of the year. The study builds on an exact decomposition framework outlined in Wodon and Yitzhaki (2003), and in Yitzhaki and Wodon...

Two conversion schemes may be employed for assessing income inequality from household equivalent incomes: to weight household units by size or by needs. Using data from the Luxembourg Income Study, we show the sensitivity of country inequality rankings to conversion schemes and explain the...

Income-expenditure surveys typically provide incomes on the household level. As households can differ in size and needs, a reliable assessment of inequality in living standards, therefore, necessitates the conversion of the original heterogeneous into an artificial quasi-homogeneous population....

Modern macroeconomics empirically addresses economy-wide incentives behind economic actions by using insights from the way a single representative household would behave. This analytical approach requires that incentives of the poor and the rich are strictly aligned. In empirical analysis a...

Two conversion schemes are usually employed for assessing personal-income inequality from household equivalent incomes: to weight household units by size or by needs. Using data from the Luxembourg Income Study, the authors show the sensitivity of country inequality rankings to conversion...

Most simulated micro-founded macro models use solely consumer-demand aggregates in order to estimate deep economy-wide preference parameters, which are useful for policy evaluation. The underlying demand-aggregation properties that this approach requires, should be easy to empirically disprove:...

According to calculations based on the Socio-Economic Panel (SOEP) study, average disposable household income rose by five percent in real terms between 2000 and 2012. Only the highest earners have benefited from this development. While real income in the top ten percent rose by more than 15...

Das durchschnittliche reale verfügbare Haushaltseinkommen ist nach Berechnungen auf Basis des Sozio-oekonomischen Panels (SOEP) von 2000 bis 2012 um fünf Prozent gestiegen. Von dieser Entwicklung profitieren aber nur die oberen Einkommensgruppen. Während die realen Einkommen der obersten zehn...

According to calculations based on the Socio-Economic Panel (SOEP) study, the proportion of middle-income group in Germany fell by six percentage points from 1991 to 2013, taking it to 54 percent. Germany is not the only country to have experienced such a downturn, however. Analyses of the...