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Regional Income Stratification in Unified Germany using a Gini Decomposition Approach

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Goebel, Jan; Frick, Joachim R.

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Abstract This paper delivers new insights into the development of income inequality and regional stratification in Germany after unification using a new method for detecting social stratification by a decomposition of the GINI index which yields the obligatory between- and within-group components as well as an overlapping index for the different sup-populations. We find that East Germany is still a stratum on its own when using post-government income, but since 2001 no longer is when using pre-government income. These results remain stable when using alternatively defined regional classifications. However, there are also indications of some regional variation within West Germany.
Keywords SOEP
Classification Sociology of Economics; Economic Policy; Income Policy, Property Policy, Wage Policy
Free Keywords Inequality Decomposition; Gini; Stratification; German Unification; Regional Disparities; Stratification
Document language English
Publication Year 2008
Page/Pages p. 555-577
Journal Regional Studies, 42 (2008) 4
Status Postprint; peer reviewed
Licence PEER Licence Agreement (applicable only to documents from PEER project)