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Regional Income Inequality in Germany

Immo Frieden, Andreas Peichl, Paul Schüle
CESifo, Munich, 2023

EconPol Forum 24 (2), 50-55
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  • We characterize regional inequality in gross incomes at the municipality level in Germany using data from administrative tax returns for the period 1998-2016
  • More unequal municipalities are more likely to be urban and located in West Germany
  • Decomposing the increase in inequality in the last two decades into a between and within municipality component, we find that the increase was entirely driven by growing inequality within municipalities
  • Thirty years after reunification, Germany is a country with rather modest interregional inequalities but a growing level of intraregional inequality

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