Facts

Inequality in Charts

Gap in hourly wages between top and low earners

After the dramatic increase between the mid-1990s and 2005, the gap between the top and bottom has not widened any further. More recently, inequality has even fallen noticeably again, but without returning to the lower levels of the past.

graphic
Data basis: SOEPv37. Calculations by DIW Berlin.

Distribution of annual income in Germany

Income inequality has also not worsened significantly since 2005. However, the previous sharp increase has not been corrected either, despite the significant fall in unemployment during this period. One reason for the divergence between relatively good hourly earnings and poorer annual earnings is the growing number of part-time contracts.

graphic
Data basis: SOEPv37. Calculations by DIW Berlin.

Gini coefficient for the inequality of wealth in Germany

Despite minor discrepancies, the long-term trend of increasing wealth inequality is recognisable in all key survey data.

graphic
Source: Albers, T., Bartels, C., & Schularick, M. (2022). Wealth and its Distribution in Germany, 1895-2018.

Drastically increased gap between rich and poor

Comparing the top wealthy with the half of the population with virtually no wealth shows how much the gap has actually widened over the past 30 years.

graphic
Source: Albers, T., Bartels, C., & Schularick, M. (2022). Wealth and its Distribution in Germany, 1895-2018.

Richest ten per cent hold two thirds of assets

Since the beginning of the 1990s, the share of the bottom half of the population has again fallen sharply. According to all estimates, the richest ten per cent now hold around 60 per cent of the wealth, although the exact figures (here just under 60 per cent) vary only slightly depending on the source.

graphic
Source: Albers, T., Bartels, C., & Schularick, M. (2022). Wealth and its Distribution in Germany, 1895-2018.

Perceived or real - how unequally is wealth distributed in Germany?

To the stocktaking paper