Redistribution and insurance in the German welfare state
Bartels, Charlotte ;  ;  Universität <Berlin, Freie Universität> / Fachbereich Wirtschaftswissenschaft

Main titleRedistribution and insurance in the German welfare state
AuthorBartels, Charlotte
InstitutionUniversität <Berlin, Freie Universität> / Fachbereich Wirtschaftswissenschaft
No. of Pages30 S.
Series ; 2011,25 : Economics
KeywordsLong-term income inequality; Income redistribution; Social security
Classification (DDC)336 Public finance
AbstractWelfare states redistribute both between individuals (inter-individual
redistribution) reducing annual, cross-sectional inequality and over the lifecycle
of an individual (intra-individual redistribution) insuring individuals
against income risks in the long-term. But studies measuring redistribution
often focus on a one-year period and the second aspect is neglected. To quantify
both inter- and intra-individual redistribution in Germany this study uses
SOEP data from 1984 to 2009 to construct long-term incomes over a 20-year
period. Results show that annual, cross-sectional inequality is higher than
inequality in the long-run, but the effect of redistribution is also larger annually
than in the long-term. Depending on age the distributional focus of the
German welfare state differs. When persons are young, state intervention reduces
income differences between individuals mainly through the progressive
tax system. Getting older and reaching retirement age income-smoothing
redistribution via social security pensions becomes central.
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FU DepartmentDepartment Business and Economics
Other affiliation(s)Institut für Wirtschaftspolitik und Wirtschaftsgeschichte
Year of publication2011
Type of documentBook
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Created at2011-12-14 : 03:11:03
Last changed2015-05-21 : 12:17:42
Static URLhttp://edocs.fu-berlin.de/docs/receive/FUDOCS_document_000000012620