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The Panel on Household Finances (PHF) has established itself as one of the leading sources of microdata on households' wealth in Germany since its inception in 2010. Over the last ten years, more than 7,583 households have participated in the surveys in 2010–11, 2014 and 2017, many of them taking part more than once (3,734 households). This paper provides an overview of the contents, main methodological aspects and use of the PHF data. It also highlights differences to other surveys and addresses how the survey may develop in the future. [ABSTRACT FROM AUTHOR]

This paper investigates the relationship between wealth, ageing and saving behaviour of private households by using pooled cross sections of German consumption survey data. Different components of wealth are distinguished, as their impact on the savings rate is not homogeneous. On average, the effect attributed to real estate dominates the other components of wealth. In addition, the savings rate strongly responds to demographic trends. Besides the direct impact of the age structure, an indirect effect arises through the accumulation of wealth. The savings rate does not decrease with age in a monotonic way, as the permanent income hypothesis suggests. Most prominently, older households tend to increase their savings in the second half of their retirement period, probably due to bequest motives and increasing immobility. Given the ongoing demographic trend, an increase of 1.4 percentage points in the aggregated savings rate should be expected over the next two decades. [ABSTRACT FROM AUTHOR]

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Research has documented gender inequalities in parental financial gifts, but it is unclear under which conditions these inequalities are socially accepted. We combine distributive justice theory with sociological and economic perspectives on intergenerational transfers to examine perceptions of fair allocations of parental gifts. By manipulating children's characteristics in a multifactorial vignette experiment, we conducted in Germany in 2020 (N  = 4284 observations of 714 respondents), we test the prevalence and gendered application of four justice principles (equality, need, entitlement and equity). While the equality principle was widespread, unequal gifts were legitimized both by children's financial needs (unemployment) and exchange services (helping in parents' household). These results indicate that the family is perceived as an agency for economic redistribution, potentially affecting society's socio-economic structure. Moreover, exchange services weighed more for sons while needs weighed more for daughters, suggesting that gendered fairness perceptions are one possible mechanism explaining gender inequalities in financial gifts. [ABSTRACT FROM AUTHOR]

In this article, I evaluate whether educational attainment in Germany is stratified by parental wealth and at which transitions stratification emerges. I propose a four-stage model to capture the emergence of stratification in the German education system, which is characterized by early between-school tracking: (i) transition to the tracked secondary school, (ii) attended track in the last year of mandatory schooling, (iii) highest school-leaving certificate, and (iv) transition to vocational or tertiary education. Results suggest that stratification by parental wealth emerges at all four stages, and, therefore, accumulates over the stages. Children living in wealthy households are 20 per cent more likely to attend the highest track in fifth grade and to obtain the highest school-leaving certificate and are 40 per cent more likely to enroll in tertiary education compared to children at the bottom of the wealth distribution. Furthermore, parental wealth seems to be particularly effective in preventing negative outcomes like leaving school without a certificate or not finding a fully qualifying vocational training. Among those who do not obtain the formal requirements to enroll in tertiary education, those with wealthy parents are more likely to start dual vocational training. [ABSTRACT FROM AUTHOR]

This study examines the role of occupational classes in the Gender Wealth Gap (GWG). Despite rising interest in gender differences in wealth, the central role of occupations in restricting and enabling its accumulation has been neglected thus far. Drawing on the German Socio-Economic Panel, this study employs quantile regressions and decomposition techniques. It finds explanatory power of occupational classes for the gender wealth gap, which exists despite accounting for other labor-market-relevant parameters, such as income, tenure, and full-time work experience at different points of the wealth distribution. Wealth gaps by gender vary between and within occupational classes. Particularly, women's underrepresentation among the self-employed and overrepresentation among sociocultural professions explain the GWG in Germany. The study thus adds another dimension of stratification – occupational class – to the discussion on the gendered distribution of wealth. [ABSTRACT FROM AUTHOR]

Background: Inequalities in health and wealth distributions are becoming pressing societal problems in many countries. How these inequalities are perceived and to what degree perceptions are aligned with actual distributions, is important for trust in public health services, social and economic policies, and policymakers. This study aims to assess perceived and desired levels of inequality in health and wealth in Germany and the UK.Methods: The online-survey was filled out by 769 volunteers (322 from Germany, 447 from the UK), recruited from an existing commercial panel (Prolific Academic) or via Facebook advertisements in 2019. Perceived and ideal national health and wealth distributions were assessed and compared to actual health indicators (i.e. days absent from work, number of visits to general practitioners (GPs) and self-rated health), and actual wealth distributions with t-tests.Results: A pronounced gap emerged between the estimated, ideal and actual inequality. Both samples strikingly underestimated the proportion of (very) good health in the national distribution by a factor of ~ 2.3 (participants estimated that 34% of the German and 36% of the UK population respectively are very healthy or healthy, while the actual proportion in the population was 75% in Germany and 84% in the UK, P < 0.001 for all). Moreover, actual health distributions were much closer to the desired than the perceived health distributions (78% of German and 72% of UK participants ideally being very healthy or healthy). A reversed pattern of results emerged for wealth in both samples, with wealth inequality being strikingly worse than desired and inequality being underestimated by a factor ~ 1.7 (P < 0.001 for all). Results were consistent across demographic groups.Conclusions: Respondents in both Germany and the UK have profoundly negative misperceptions regarding the distribution of health, which contrasts with starkly positive misperceptions regarding the distribution of wealth, indicating that the public is healthier but poorer than they think. More importantly, from a public health perspective, a high level of consensus emerged, with both healthy and wealthy participants misperceiving health and wealth distributions. [ABSTRACT FROM AUTHOR]

Copyright of Wirtschafts- und Sozialwissenschaftliches Institut Mitteilungen is the property of Nomos Verlagsgesellschaft mbH & Co. KG and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Objective: This study examined potentially gendered net worth changes over the marital dissolution process, starting up to 3 years prior to separation and continuing up to 15 years postdivorce. Background: Incipient literature showed steep wealth declines for men and women associated with divorce, treating marital dissolution as a single point‐in‐time event. These findings may be limiting as legal regulations and divorce‐stress‐adjustment research conceptualize marital dissolution as a process that lasts several years. Method: Using fixed effects regression models, we analyzed changes in personal net worth as well as changes in personal net housing worth and financial net worth of individuals whose marriages dissolved between 2002 and 2017. Analyses used comprehensive wealth data from the German Socio‐Economic Panel study. Results: Although wealth declines commenced prior to separation, separation was the most critical point with 82% and 76% reductions in personal wealth of men and women, respectively. Divorce did not pose additional wealth penalties, but wealth was also not recovered in years after divorce. The lasting separation penalty was mainly driven by declines in housing wealth and a lack of financial wealth recovery. Overall, both men and women experienced dramatic relative wealth declines with negligible gender differences. Predicted wealth levels, however, indicated that men may be in a financially better position compared to women due to higher preseparation wealth levels. Conclusion: Results illustrated important variations in personal wealth measures over the marital dissolution process, which may drive lasting wealth inequalities, particularly with regard to housing wealth for both men and women. [ABSTRACT FROM AUTHOR]

Objective: To document how changes in household wealth following the dissolution of marriage and cohabitation differ by gender in Germany. Background: Marital property regimes usually prescribe that both partners receive a share of the couple's wealth following a divorce. The dissolution of cohabiting unions is not governed by marital property regimes in most countries, including Germany. Because men, on average, legally own a larger share of couple wealth than women, gender differences in household wealth might be more pronounced following the dissolution of cohabitation as compared to marriage. Method: The analysis consists of individual fixed effects regression models using longitudinal data from the German socio‐economic panel (N = 18,131 individuals) for the years 2002 to 2017. Results: The dissolution of marriage is negatively related to the accumulation of wealth over time and effect sizes are similar for men and women. The dissolution of cohabiting unions is related to losses in wealth for women but not for men. Models accounting for various postdissolution factors suggest that an unequal division of household wealth produces these gender differences after the dissolution of cohabitation. Conclusion: Whereas the dissolution of marriage lowers household wealth for men and women alike, there are gender differences in how the dissolution of cohabiting unions affects the accumulation of wealth. Union dissolution therefore has the potential to contribute to gender inequality in household wealth. [ABSTRACT FROM AUTHOR]

• Children of wealthy parents show higher math competences in the first grade. • Competence differences by parental wealth remain stable throughout primary school. • Children of wealthy parents are more likely to attend the highest school track. • Wealth differences add to other social disparities by SES. Recent research has established parental wealth as an important determinant of children's educational achievement. However, parental wealth is often ignored in research on social inequality in education, or its influence is only considered at later stages of children's educational careers. Our paper contributes to this research by examining the relationship between parental wealth and (1) children's math competences at the beginning of primary school; (2) the development of children's competences throughout primary school; and (3) children's transition from primary to secondary school. We are looking at Germany, where the early ability tracking may make an early investment in education particularly important. Analyzing data from the German National Educational Panel Study, we find that parental wealth has a distinct association with children's educational outcomes that adds to social disparities by other measures of parents' socioeconomic status (SES). Our results indicate that children in wealthy households have higher competences already in the first grade. This advantage remains stable throughout primary school and translates into a higher probability to attend the highest secondary school track. Moreover, children in these wealthy households are more likely to attend the highest secondary school track, net of differences in competences and performance. Our results imply that ignoring wealth as a component of parental SES leads to an underestimation of the level of social inequality in education in Germany. [ABSTRACT FROM AUTHOR]

We examine the composition of augmented household wealth (i.e., the sum of net worth and pension wealth) in the United States and Germany. Pension wealth makes up a considerable portion of household wealth, of about 48 percent in the United States and 61 percent in Germany. When pension wealth is included in household wealth, the Gini coefficient falls from 0.889 to 0.700 in the United States, and from 0.755 to 0.508 in Germany. If the wealth shares in Germany were the same as in the United States, this would lead to a 12.6 percent increase in the Gini coefficient in the augmented wealth distribution in Germany. [ABSTRACT FROM AUTHOR]

The research on wealth inequality has generally focused on real and financial assets, while giving little attention to pension wealth: the present value of future pension entitlements from public and company pension schemes. This is surprising given the important role pension plans play in guaranteeing material security and well‐being for a majority of the population, and suggests that they should be accounted for in peoples' wealth portfolios. Using novel data from the Socio‐Economic Panel (SOEP), we study the incidence, relevance, and distribution of individual pension wealth, net worth, and augmented wealth (the sum of the two) in Germany. Further, we investigate age‐wealth profiles and differences between East and West Germany. [ABSTRACT FROM AUTHOR]

The finding that homeowners own more non-housing wealth than tenants is well known. We examine whether the higher financial wealth of owners can be partly explained with increases in saving when becoming a homeowner in two distinct institutional contexts. Using longitudinal data for the UK (British Household Panel Survey) and Germany (Socio-Economic Panel Study), we find that homeowners save more and are financially wealthier than tenants. However, when controlling for time-constant selection into homeownership, upon entering homeownership households reduce their probability to save in Germany and reduce their average saving rate in Germany and the UK. For Germany, there is some evidence that processes of homemaking (family formation and home improvement) lead to less saving. For the UK, we find no evidence that increasing home equity over time discourages saving. Finally, tenants do not compensate for their lack of housing wealth by accumulating more non-housing wealth over time. This disadvantage for tenants seems more pronounced in the UK compared to Germany. [ABSTRACT FROM AUTHOR]

By 2010, 27 to 40 percent of all households in euro countries had inherited or received gifts. This only includes transfers from outside their own household. The present value of these transfers averaged between 85,000 and 274,000 euros, depending on the relevant country. The sum of all inheritances and gifts in western Germany corresponds to one-third of the current net worth of households--and is the highest of all euro countries included in this study. Based on recipient households only, the share in western Germany is 52 percent. In Austria, Belgium, France, and western Germany, individuals from high-income households inherit more frequently and receive much higher amounts than those from low-income households. Since intergenerational income mobility is low, highincome households can build wealth, both from regular income and from substantial capital transfers. [ABSTRACT FROM AUTHOR]

The analyses of wealth inequality based on survey data usually suffer from undercoverage of the upper percentiles of the very wealthy. Yet given this group's substantial share of total net worth, it is of particular relevance. As no tax data are available in Germany, the largest fortunes can only be simulated using "rich lists." For example, combining the Forbes list, with its approximately 50 Ger man US dollar billionaires, with survey data results in an increased aggregate total net worth for all households in Germany in 2012 of between one-third and 50 percent, depending on the scenario. Moreover, the share of the richest one percent of the population (about 400,000 households) rises from approximately one-fifth to one-third. After reassessment, the richest ten percent of the population's share of total net worth is estimated to be between 64 and 74 percent, depending on the scenario. These reassessments are characterized by a high degree of uncertainty which eventually can only be reduced by improving the base data. [ABSTRACT FROM AUTHOR]

In 2013, some 2.6 million people received long-term care benefits. The number of benefit recipients has risen by 45 percent since 1998. A good 70 percent of benefit recipients, roughly 1.7 million people, are cared for at home and nearly 30 percent in a nursing facility. There are also a significant number of individuals who are dependent on care but not to such an extent that they are entitled to benefits from their care insurance. Instead, they are almost all cared for at home. Long-term care is usually a major burden on the individuals and households concerned. Alongside health-related restrictions, there are also additional costs due to medical expenses and care. At the same time, related caregivers often earn less, since they are forced to reduce working hours to take on care commitments. The present study shows that care households have similar incomes to households without care recipients. However, transfer payments for care recipients make up a relatively high share of total income. Moreover, care recipients' assets are far lower than those of individuals without care needs. Care recipients living alone have particularly limited financial resources, and they represent more than 40 percent of all care households. [ABSTRACT FROM AUTHOR]