Gender inequality in the one percent: A look under the hood of high incomes in Germany

Abstract

Gender differences in economic outcomes are important topics in social science research. However, the study of gender differences among economic elites - "the top one percent" - has received surprisingly little attention, likely also due to a lack of empirical data. This paper investigates gender differences in individual and household income among the top one percent of individual monthly net incomes and top two percent of net household incomes using data from the German Microcensus from 2006 to 2016 covering more than 3.3 million individuals. I find that women account for only around 14% of the one percent in individual incomes. Additionally, regarding the household level, women's incomes are sufficient to achieve two percent status in fewer than 10% of all households. Both numbers did hardly change over the decade from 2006 to 2016. Furthermore, women's pathways to belonging to a high-income household are far more dependent on their partner's education and employment status than men's. Overall, the findings thus show dramatic gender differences among the German economic elite that do not narrow over time.