[go: up one dir, main page]
More Web Proxy on the site http://driver.im/
IDEAS home Printed from https://ideas.repec.org/p/diw/diwwpp/dp806.html
   My bibliography  Save this paper

Examining the Gender Wealth Gap in Germany

Author

Listed:
  • Eva M. Sierminska
  • Joachim R. Frick
  • Markus M. Grabka
Abstract
Welfare-oriented analyses of economic outcome measures such as income and wealth generally rest on the assumption of pooled and equally shared resources among all household members. Yet the lack of individual-level data hampers the distribution of income and wealth within the household context. Based on unique individual-level wealth data from the German Socio-Economic Panel (SOEP), this paper challenges the implicit assumption of internal redistribution by considering an alternative definition of the aggregation unit and by controlling its effect on distribution and inequality analysis. We find empirical evidence for a significant gender wealth gap of about 30,000 euros in Germany, which amounts to almost 50,000 euros for married partners. Decomposition analyses reveal that this gap is mostly driven by differences in characteristics between men and women, the most important factor being the individual's own income and labor market experience, and particularly so at the bottom and top of the wealth distribution. However, this finding can only be shown with non-parametric decomposition techniques. Differences for those in the middle of the distribution appear to be mostly driven by the wealth function, i.e., the way in which women transform their characteristics into wealth.

Suggested Citation

  • Eva M. Sierminska & Joachim R. Frick & Markus M. Grabka, 2008. "Examining the Gender Wealth Gap in Germany," Discussion Papers of DIW Berlin 806, DIW Berlin, German Institute for Economic Research.
  • Handle: RePEc:diw:diwwpp:dp806
    as

    Download full text from publisher

    File URL: https://www.diw.de/documents/publikationen/73/diw_01.c.87575.de/dp806.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Kimball, Miles S, 1990. "Precautionary Saving in the Small and in the Large," Econometrica, Econometric Society, vol. 58(1), pages 53-73, January.
    2. DiNardo, John & Fortin, Nicole M & Lemieux, Thomas, 1996. "Labor Market Institutions and the Distribution of Wages, 1973-1992: A Semiparametric Approach," Econometrica, Econometric Society, vol. 64(5), pages 1001-1044, September.
    3. John Gibson & Trinh Le & Steven Stillman, 2007. "What explains the wealth gap between immigrants and the New Zealand born?," New Zealand Economic Papers, Taylor & Francis Journals, vol. 41(2), pages 131-162.
    4. Lucie Schmidt & Purvi Sevak, 2006. "Gender, Marriage, And Asset Accumulation In The United States," Feminist Economics, Taylor & Francis Journals, vol. 12(1-2), pages 139-166.
    5. Joachim R. Frick & Markus M. Grabka & Eva M. Sierminska, 2007. "Representative Wealth Data for Germany from the German SOEP: The Impact of Methodological Decisions around Imputation and the Choice of the Aggregation Unit," Discussion Papers of DIW Berlin 672, DIW Berlin, German Institute for Economic Research.
    6. Grossbard,Shoshana A. (ed.), 2003. "Marriage and the Economy," Cambridge Books, Cambridge University Press, number 9780521891431, January.
    7. Deborah A. Cobb-Clark & Vincent A. Hildebrand, 2006. "The Wealth of Mexican Americans," Journal of Human Resources, University of Wisconsin Press, vol. 41(4).
    8. Regina Riphahn & Oliver Serfling, 2005. "Item non-response on income and wealth questions," Empirical Economics, Springer, vol. 30(2), pages 521-538, September.
    9. Haddad, Lawrence & Kanbur, Ravi, 1990. "How Serious Is the Neglect of Intra-Household Inequality?," Economic Journal, Royal Economic Society, vol. 100(402), pages 866-881, September.
    10. Judith Robinson, 2002. "Race, Gender, and Familial Status: Discrimination in One US Mortgage Lending Market," Feminist Economics, Taylor & Francis Journals, vol. 8(2), pages 63-85.
    11. Lena Edlund & Wojciech Kopczuk, 2009. "Women, Wealth, and Mobility," American Economic Review, American Economic Association, vol. 99(1), pages 146-178, March.
    12. Oaxaca, Ronald, 1973. "Male-Female Wage Differentials in Urban Labor Markets," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 14(3), pages 693-709, October.
    13. Milton Friedman, 1957. "A Theory of the Consumption Function," NBER Books, National Bureau of Economic Research, Inc, number frie57-1.
    14. Elena Bardasi & Janet Gornick, 2008. "Working for less? Women's part-time wage penalties across countries," Feminist Economics, Taylor & Francis Journals, vol. 14(1), pages 37-72.
    15. Francine D. Blau & Lawrence M. Kahn, 2000. "Gender Differences in Pay," Journal of Economic Perspectives, American Economic Association, vol. 14(4), pages 75-99, Fall.
    16. Juhn, Chinhui & Murphy, Kevin M & Pierce, Brooks, 1993. "Wage Inequality and the Rise in Returns to Skill," Journal of Political Economy, University of Chicago Press, vol. 101(3), pages 410-442, June.
    17. Blau, Francine D & Kahn, Lawrence M, 1996. "International Differences in Male Wage Inequality: Institutions versus Market Forces," Journal of Political Economy, University of Chicago Press, vol. 104(4), pages 791-836, August.
    18. Joachim R. Frick & Markus M. Grabka & Jan Marcus, 2007. "Editing and Multiple Imputation of Item-Non-Response in the 2002 Wealth Module of the German Socio-Economic Panel (SOEP)," Data Documentation 18, DIW Berlin, German Institute for Economic Research.
    19. Grossbard,Shoshana A. (ed.), 2003. "Marriage and the Economy," Cambridge Books, Cambridge University Press, number 9780521814546, January.
    20. Blau, Francine D & Kahn, Lawrence M, 1997. "Swimming Upstream: Trends in the Gender Wage Differential in 1980s," Journal of Labor Economics, University of Chicago Press, vol. 15(1), pages 1-42, January.
    21. Shelley A. Phipps & Peter S. Burton, 1995. "Sharing within Families: Implications for the Measurement of Poverty among Individuals in Canada," Canadian Journal of Economics, Canadian Economics Association, vol. 28(1), pages 177-204, February.
    22. Barsky R. & Bound J. & Charles K.K. & Lupton J.P., 2002. "Accounting for the Black-White Wealth Gap: A Nonparametric Approach," Journal of the American Statistical Association, American Statistical Association, vol. 97, pages 663-673, September.
    23. Carmen Diana Deere & Cheryl Doss, 2006. "The Gender Asset Gap: What Do We Know And Why Does It Matter?," Feminist Economics, Taylor & Francis Journals, vol. 12(1-2), pages 1-50.
    24. Tracey Warren, 2006. "Moving Beyond The Gender Wealth Gap: On Gender, Class, Ethnicity, And Wealth Inequalities In The United Kingdom," Feminist Economics, Taylor & Francis Journals, vol. 12(1-2), pages 195-219.
    25. Woolley, Frances R, 1993. "The Feminist Challenge to Neoclassical Economics," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 17(4), pages 485-500, December.
    26. Suen, Wing, 1997. "Decomposing Wage Residuals: Unmeasured Skill or Statistical Artifact?," Journal of Labor Economics, University of Chicago Press, vol. 15(3), pages 555-566, July.
    27. Eva Sierminska & Andrea Brandolini & Timothy M Smeeding, 2007. "Comparing wealth distribution across rich countries: the Luxembourg Wealth Study project," IFC Bulletins chapters, in: Bank for International Settlements (ed.), Proceedings of the IFC Conference on "Measuring the financial position of the household sector", Basel, 30-31 August 2006 - Volume 1, volume 25, pages 297-310, Bank for International Settlements.
    28. Gert G. Wagner & Joachim R. Frick & Jürgen Schupp, 2007. "The German Socio-Economic Panel Study (SOEP) – Scope, Evolution and Enhancements," Schmollers Jahrbuch : Journal of Applied Social Science Studies / Zeitschrift für Wirtschafts- und Sozialwissenschaften, Duncker & Humblot, Berlin, vol. 127(1), pages 139-169.
    29. Alexis Yamokoski & Lisa Keister, 2006. "The Wealth Of Single Women: Marital Status And Parenthood In The Asset Accumulation Of Young Baby Boomers In The United States," Feminist Economics, Taylor & Francis Journals, vol. 12(1-2), pages 167-194.
    30. Alan S. Blinder, 1973. "Wage Discrimination: Reduced Form and Structural Estimates," Journal of Human Resources, University of Wisconsin Press, vol. 8(4), pages 436-455.
    31. Jay L. Zagorsky, 1999. "Young Baby Boomers' Wealth," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 45(2), pages 135-156, June.
    32. Phillip B. Levine & Olivia S. Mitchell & James F. Moore, "undated". "Women on the Verge of Retirement: Predictors of Retiree Well-being," Pension Research Council Working Papers 97-2, Wharton School Pension Research Council, University of Pennsylvania.
    33. June O'Neill, 2003. "The Gender Gap in Wages, circa 2000," American Economic Review, American Economic Association, vol. 93(2), pages 309-314, May.
    34. John Gibson & Trinh Le & Grant Scobie, 2006. "Household Bargaining Over Wealth And The Adequacy Of Women'S Retirement Incomes In New Zealand," Feminist Economics, Taylor & Francis Journals, vol. 12(1-2), pages 221-246.
    35. Timothy Smeeding & Eva Sierminska & Andrea Brandolini, 2006. "Comparing Wealth Distribution across Rich Countries: First Results from the Luxembourg Wealth Study," LWS Working papers 1, LIS Cross-National Data Center in Luxembourg.
    36. repec:bla:revinw:v:45:y:1999:i:2:p:135-56 is not listed on IDEAS
    37. Lupton, J. & Smith, J.P., 1999. "Marriage, Assets, and Savings," Papers 99-12, RAND - Labor and Population Program.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Pedro Salas-Rojo & Juan Gabriel Rodríguez, 2021. "The distribution of wealth in Spain and the USA: the role of socioeconomic factors," SERIEs: Journal of the Spanish Economic Association, Springer;Spanish Economic Association, vol. 12(3), pages 389-421, September.
    2. Hans Fehr & Manuel Kallweit & Fabian Kindermann, 2009. "Marital Risk, Family Insurance, and Public Policy," SOEPpapers on Multidisciplinary Panel Data Research 226, DIW Berlin, The German Socio-Economic Panel (SOEP).
    3. Frank Cowell & Karagiannaki, E. & Abigail Mcknight, 2013. "GINI DP 72: Accounting for cross-country differences in wealth inequality," GINI Discussion Papers 72, AIAS, Amsterdam Institute for Advanced Labour Studies.
    4. Pedro Salas-Rojo & Juan Gabriel Rodríguez, 2019. "The distribution of wealth in the U.S. and Spain: the role of socio-economic factors," Working Papers 506, ECINEQ, Society for the Study of Economic Inequality.
    5. Peter Lindner, 2015. "Factor decomposition of the wealth distribution in the euro area," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 42(2), pages 291-322, May.
    6. Wyrwich, Michael, 2013. "Can socioeconomic heritage produce a lost generation with regard to entrepreneurship?," Journal of Business Venturing, Elsevier, vol. 28(5), pages 667-682.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Eva M. Sierminska & Joachim R. Frick & Markus M. Grabka, 2010. "Examining the gender wealth gap," Oxford Economic Papers, Oxford University Press, vol. 62(4), pages 669-690, October.
    2. GRABKA Markus & MARCUS Jan & SIERMINSKA Eva, 2013. "Wealth distribution within couples and financial decision making," LISER Working Paper Series 2013-02, Luxembourg Institute of Socio-Economic Research (LISER).
    3. Markus Grabka & Jan Marcus & Eva Sierminska, 2015. "Wealth distribution within couples," Review of Economics of the Household, Springer, vol. 13(3), pages 459-486, September.
    4. Sierminska, Eva & Piazzalunga, Daniela & Grabka, Markus M., 2018. "Transitioning towards more equality? Wealth gender differences and the changing role of explanatory factors over time," GLO Discussion Paper Series 252, Global Labor Organization (GLO).
    5. Lucie Schmidt & Purvi Sevak, 2006. "Gender, Marriage, And Asset Accumulation In The United States," Feminist Economics, Taylor & Francis Journals, vol. 12(1-2), pages 139-166.
    6. Anglade, Boaz & Useche, Pilar & Deere, Carmen Diana, 2017. "Decomposing the Gender Wealth Gap in Ecuador," World Development, Elsevier, vol. 96(C), pages 19-31.
    7. Sonja C. Kassenboehmer & Mathias G. Sinning, 2014. "Distributional Changes in the Gender Wage Gap," ILR Review, Cornell University, ILR School, vol. 67(2), pages 335-361, April.
    8. Mathä, Thomas Y. & Porpiglia, Alessandro & Ziegelmeyer, Michael, 2017. "Household wealth in the euro area: The importance of intergenerational transfers, homeownership and house price dynamics," Journal of Housing Economics, Elsevier, vol. 35(C), pages 1-12.
    9. Alyssa Schneebaum & Miriam Rehm & Katharina Mader & Katarina Hollan, 2018. "The Gender Wealth Gap Across European Countries," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 64(2), pages 295-331, June.
    10. Gale, William & Pence, Karen, 2006. "Are Successive Generations Getting Wealthier, and If So, Why?Evidence from the 1990s," MPRA Paper 55502, University Library of Munich, Germany.
    11. Alyssa Schneebaum & Miriam Rehm & Katharina Mader & Patricia Klopf & Katarina Hollan, 2014. "The Gender Wealth Gap in Europe," Department of Economics Working Papers wuwp186, Vienna University of Economics and Business, Department of Economics.
    12. Waitkus, Nora & Minkus, Lara, 2021. "Investigating the gender wealth gap across occupational classes," LSE Research Online Documents on Economics 108206, London School of Economics and Political Science, LSE Library.
    13. Antonczyk, Dirk & Fitzenberger, Bernd & Sommerfeld, Katrin, 2010. "Rising wage inequality, the decline of collective bargaining, and the gender wage gap," Labour Economics, Elsevier, vol. 17(5), pages 835-847, October.
    14. Jaanika Meriküll & Merike Kukk & Tairi Rõõm, 2021. "What explains the gender gap in wealth? Evidence from administrative data," Review of Economics of the Household, Springer, vol. 19(2), pages 501-547, June.
    15. Usamah Fayez Al-Farhan, 2010. "Changes in the Gender Wage Gap in Germany during a Period of Rising Wage Inequality 1999-2006: Was it Discrimination in the Returns to Human Capital?," SOEPpapers on Multidisciplinary Panel Data Research 293, DIW Berlin, The German Socio-Economic Panel (SOEP).
    16. Marina Bonaccolto-Töpfer & Carolina Castagnetti & Luisa Rosti, 2023. "Changes in the gender pay gap over time: the case of West Germany," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 57(1), pages 1-17, December.
    17. Jacqueline Mosomi, 2019. "Distributional changes in the gender wage gap in the post-apartheid South African labour market," WIDER Working Paper Series wp-2019-17, World Institute for Development Economic Research (UNU-WIDER).
    18. Fortin, Nicole & Lemieux, Thomas & Firpo, Sergio, 2011. "Decomposition Methods in Economics," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 4, chapter 1, pages 1-102, Elsevier.
    19. Julia Groiß & Alsyssa Schneebaum & Barbara Schuster, 2017. "Vermögensunterschiede nach Geschlecht in Österreich und Deutschland: Eine Analyse auf der Personenebene," Working Paper Reihe der AK Wien - Materialien zu Wirtschaft und Gesellschaft 168, Kammer für Arbeiter und Angestellte für Wien, Abteilung Wirtschaftswissenschaft und Statistik.
    20. Duc Hong Vo & Phuong Doan Ho & Chi Minh Ho & Michael McAleer, 2019. "The Gender Wealth Gap by Household Head in Vietnam," Advances in Decision Sciences, Asia University, Taiwan, vol. 23(3), pages 122-153, September.

    More about this item

    Keywords

    Wealth gap; Wealth inequality; Gender; SOEP;
    All these keywords.

    JEL classification:

    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D69 - Microeconomics - - Welfare Economics - - - Other
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:diw:diwwpp:dp806. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Bibliothek (email available below). General contact details of provider: https://edirc.repec.org/data/diwbede.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.