Wage mobility reduces the persistence of wage inequality. We develop a framework to quantify the contribution of employer-to-employer movers to aggregate wage mobility. Using three decades of German social security data, we find that inequality increased while aggregate wage mobility decreased. Employer-to-employer movers exhibit higher wage mobility, mainly due to changes in employer wage premia at job change. The massive structural changes following German unification temporarily led to a high number of movers, which in turn boosted aggregate wage mobility. Wage mobility is much lower at the bottom of the wage distribution, and the decline in aggregate wage mobility since the 1980s is concentrated there. The overall decline can be mostly attributed to a reduction in wage mobility per mover, which is due to a compositional shift toward lower-wage movers.

We investigate public preferences for equity-enhancing policies in access to early child care, using a survey experiment with a representative sample of the German population (n ≈ 4, 800). We observe strong misperceptions about migrant-native inequalities in early child care that vary by respondents’ age and right-wing voting preferences. Randomly providing information about the actual extent of inequalities has a nuanced impact on the support for equity-enhancing policy reforms: it increases support for respondents who initially underestimated these inequalities, and tends to decrease support for those who initially overestimated them. This asymmetric effect leads to a more consensual policy view, substantially decreasing the polarization in policy support between under- and overestimators. Our results suggest that correcting misperceptions can align public policy preferences, potentially leading to less polarized debates about how to address inequalities and discrimination.

The female labor income share update is based on the methodology by Neef and Robilliard (2022). This update provides estimates of the female labor income share for 1990 –2023. This methodological note explains the data sources and methodology in detail, highlighting data availability and new data that was incorporated.

Climate change and inequality are critical and interrelated issues. Despite growing empirical evidence on the distributional implications of climate policies and climate risks, mainstream model-based assessments are often silent on the interplay between climate change and economic inequality. Here we fill this gap through an ensemble of eight large-scale integrated assessment models that belong to different economic paradigms and feature income heterogeneity. We quantify the distributional implications of climate impacts and of the varying compensation schemes of climate policies compatible with the goals of the Paris Agreement. By 2100, climate impacts will increase inequality by 1.4 points of the Gini index on average. Maintaining global mean temperature below 1.5 °C reduces long-term inequality increase by two-thirds but increases it slightly in the short term. However, equal per-capita redistribution can offset the short-term effect, lowering the Gini index by almost two points. We quantify model uncertainty and find robust evidence that well-designed policies can help stabilize climate and promote economic inclusion.

This paper analyzes the distribution and composition of pre-tax national income in Germany since 1992, combining personal income tax returns, household survey data, and national accounts. Inequality rose from the 1990s to the late 2000s due to falling labor incomes among the bottom 50% and rising incomes in the top 10%. This trend reversed after 2007 as labor incomes across the bottom 90% increased. The top 1% income share, dominated by business income, remained relatively stable between 1992 and 2019. A large share of Germany’s top 1% earners are non-corporate business owners in labor-intensive professions. At least half of the business owners in P99-99.9 and a quarter in the top 0.1% operate firms in professional services – a pattern mirroring the United States. From 1992 to 2019, Germany’s top 0.1% income concentration exceeded France’s and matched U.S. levels until the late 2000s.

Kinder mit Migrationshintergrund besuchen im Vergleich zu Kindern ohne Migrationshintergrund deutlich seltener Kindertagesstätten (Kitas), obwohl gerade sie von einem Kitabesuch besonders profitieren würden. Ist sich die Bevölkerung dieser Diskrepanz bewusst? Und wie steht sie zu verschiedenen politischen Maßnahmen, die dieses Problem angehen? Wir untersuchen, ob Informationen über Ungleichheiten und Diskriminierung in der frühkindlichen Betreuung die Zustimmung der Bevölkerung zu gleichheitsfördernden Politikmaßnahmen beeinflussen. Dafür befragen wir 4 800 repräsentativ ausgewählte Personen aus der deutschen Bevölkerung. Es zeigt sich, dass die Befragten oft erhebliche Fehleinschätzungen über das Ausmaß der Ungleichheiten und Diskriminierung beim Kitazugang zwischen Familien mit und ohne Migrationshintergrund haben. Zufällig bereitgestellte Informationen über das tatsächliche Ausmaß dieser Diskrepanzen verringern die politische Polarisierung, d.h. Unterschiede in der Zustimmung zu Unterstützungsmaßnahmen für Familien mit Migrationshintergrund. Unsere Ergebnisse legen nahe, dass verzerrte Wahrnehmungen sozialer Ungleichheiten zu Meinungsunterschieden in der Bevölkerung beitragen. Ein besserer Informationsstand in der Bevölkerung könnte diese Polarisierung in der Zustimmung zu gleichheitsfördernden Politikmaßnahmen beim Zugang zu Kitas verringern.