Arbeitspapier

Lifetime earnings inequality in Germany

This paper documents the magnitude, pattern, and evolution of lifetime earnings inequality in Germany. Based on a large sample of earning biographies from social security records, we show that the intra-generational distribution of lifetime earnings of male workers has a Gini coefficient around .2 for cohorts born in the late 1930s and early 1940s; this amounts to about 2/3 of the value of the Gini coefficient of annual earnings. Within cohorts, mobility in the distribution of yearly earnings is substantial at the beginning of the lifecycle, decreases afterwards and virtually vanishes after age forty. Earnings data for thirty-one cohorts reveals striking evidence of a secular rise of intra-generational inequality in lifetime earnings: West-German men born in the early 1960s are likely to experience about 80 % more lifetime inequality than their fathers. In contrast, both short-term and long-term intra-generational mobility have been rather stable. Longer unemployment spells of workers at the bottom of the distribution of younger cohorts contribute to explain 30 to 40 % of the overall increase in lifetime earnings inequality.

Sprache
Englisch

Erschienen in
Series: IZA Discussion Papers ; No. 6020

Klassifikation
Wirtschaft
Personal Income, Wealth, and Their Distributions
Factor Income Distribution
Personal Income and Other Nonbusiness Taxes and Subsidies; includes inheritance and gift taxes
Thema
lifetime earnings
earnings distribution
inequality
mobility
Germany
Lebenseinkommen
Lohn
Lebensverlauf
Einkommensverteilung
Soziale Ungleichheit
Deutschland

Ereignis
Geistige Schöpfung
(wer)
Bönke, Timm
Corneo, Giacomo
Lüthen, Holger
Ereignis
Veröffentlichung
(wer)
Institute for the Study of Labor (IZA)
(wo)
Bonn
(wann)
2011

Handle
URN
urn:nbn:de:101:1-201110263589
Letzte Aktualisierung
10.03.2025, 11:41 MEZ

Datenpartner

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Objekttyp

  • Arbeitspapier

Beteiligte

  • Bönke, Timm
  • Corneo, Giacomo
  • Lüthen, Holger
  • Institute for the Study of Labor (IZA)

Entstanden

  • 2011

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