Factor Shares and Income Inequality — Empirical Evidence from Germany 2002-2008

Abstract

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Capital income shares and income inequality in 16 EU member countries

“…Therefore, EU-SILC does not only enable us to replicate major parts of the descriptive analysis of Adler and Schmid (2013) for 16 EU member states but we also show that capital income shares do indeed drive the concentration of household income using a fixed ef-2 fects panel data model. This allows us to control for several other factors determining income inequality such as changes in the employment level, the employment structure or demographic characteristics across countries and over time.…”

“…Besides our extension of Adler and Schmid (2013)'s descriptive analysis of the distribution of capital income shares among households, our findings contribute to this literature in a variety of ways: We provide new evidence for the link between changing factor income shares and the personal distribution of income based on EU-SILC data for 16 EU countries from 2005 to 2011. In contrast to earlier research, such as Daudey and García-Peñalosa (2007) or Checchi and García-Peñalosa (2010), we use household capital income shares calculated from micro data rather than factor income shares reported in national accounts.…”

“…The starting point of our analysis is the conceptual framework suggested by Adler and Schmid (2013). In their descriptive study, the authors connect the distribution of capital income shares and the relationship between capital income shares with levels of individual market income.…”

Labor Income Share Consequences of Global Financial Crisis: Evidence from Turkey

“…5 They used an earlier version version of the methodology applied by Gollin (2002). Zacharias, 2007;Adler and Schmid, 2012;Steffen, 2013;Schlenker and Schmid, 2014). Atkinson (2009) defined factor shares as an important starting point in establishing links between national accounts and household experience.…”

“…In addition, employee compensation data from the national income contains some components that are not included in workers' wage packets (such as social security payments), and consequently are not reported by individuals in micro data, as indicated before. Therefore, the total market income of individuals cannot be aggregated implicitly to the gross value added of an economy (see, Ryan,1996;Adler and Schmid, 2012).…”