Article in Journal

Intergenerational Income Stability: Is Germany Lagging Behind?

Paul Hufe, Andreas Peichl, Daniel Weishaar
ifo Institut, München, 2018

ifo Schnelldienst, 2018, 71, Nr. 20, 20-28

The ongoing discussion on inequality also covers the question of equal opportunities, or the extent to which income differences are due to the individuals themselves or their circumstances. According to a study recently published by the OECD, Germany is lagging behind the other industrialised nations in this respect. This article critically examines these results and shows that they represent a clear outlier compared to existing literature on this topic. The exceptionally high persistence level is particularly due to the observation of a specific population group, as well as the definition of income that is selected.

JEL Classification: D310

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ifo Institut, München, 2018