Artikel

Inequality in Germany: Decrease in gap for gross hourly wages since 2014, but monthly and annual wages remain on plateau

Despite the booming German labor market, wage inequality is still a relevant issue. In the present study, the authors report on the changes in wages and their distribution between 1992 and 2016. In addition to real contractual gross hourly wages, we closely examined gross monthly and annual wages. Based on Socio-Economic Panel (SOEP) data, the results show that wage inequality rose significantly between 1992 and 2005, in particular with respect to monthly and annual wages. Since then inequality in monthly and annual wages has plateaued at its 2005 level. Inequality in hourly wages has decreased only since 2014, and between 2013 and 2016, average real gross hourly wages rose by five percent after a longer phase of stagnation. For the lowest ten percent of the population, they rose by 13 percent-a rate related to the implementation of sector-specific wages and the statutory minimum wage. However, these minimum wages obviously did not affect monthly and annual wages as anticipated.

Language
Englisch

Bibliographic citation
Journal: DIW Weekly Report ; ISSN: 2568-7697 ; Volume: 8 ; Year: 2018 ; Issue: 9 ; Pages: 83-92 ; Berlin: Deutsches Institut für Wirtschaftsforschung (DIW)

Classification
Wirtschaft
Personal Income, Wealth, and Their Distributions
General Welfare; Well-Being
Measurement and Analysis of Poverty
Subject
wage inequality
monthly earnings
annual earnings
SOEP

Event
Geistige Schöpfung
(who)
Grabka, Markus M.
Schröder, Carsten
Event
Veröffentlichung
(who)
Deutsches Institut für Wirtschaftsforschung (DIW)
(where)
Berlin
(when)
2018

Handle
Last update
10.03.2025, 11:43 AM CET

Data provider

This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.

Object type

  • Artikel

Associated

  • Grabka, Markus M.
  • Schröder, Carsten
  • Deutsches Institut für Wirtschaftsforschung (DIW)

Time of origin

  • 2018

Other Objects (12)