Chapter 12 Variable Equivalence Scales and Trends in German Income Inequality

Abstract

This paper examines the impact on German personal income distribution of income-dependent (variable) equivalence scales. The use of variable equivalence scales causes distinctive increases in income inequality compared with income-independent, constant equivalence scales. The narrowing of income limits between the upper and lower income regions also leads to an increase in income inequality.

Citation

Faik, J. (2012), "Chapter 12 Variable Equivalence Scales and Trends in German Income Inequality", Bishop, J.A. and Salas, R. (Ed.) Inequality, Mobility and Segregation: Essays in Honor of Jacques Silber (Research on Economic Inequality, Vol. 20), Emerald Group Publishing Limited, Leeds, pp. 311-336. https://doi.org/10.1108/S1049-2585(2012)0000020015