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During the past two decades, there has been a shift of significance from the real to the financial sector. In the course of (financial) globalization, measures of liberalization and deregulation have contributed to a strengthening of financial capital. The concept of shareholder value orientation has become more powerful, capital income has increased tremendously, while real wages have stagnated. Most industrial countries have experienced a decline in the share of labor income. Based on a review of empirics and literature, this paper seeks to determine who gained from the fall in the labor share of income in the USA and Germany, respectively. If financialization is indeed responsible for the decline, rentiers should be the beneficiaries. In order to identify the relevant effects, the profit share of the two countries under observation is split between the share of retained earnings and the share of net property income (= rentiers’ income) using a modification of the approach chosen by Epstein and Jayadev (2005). The evidence presented shows that the development of the rentier income share indeed corresponds quite well with the stages of development of financialization in the two different countries: in the US, where the important shift towards financialization occurred in the early 1980s, the rentiers’ share of income shows a corresponding leap upwards exactly at that time and remains on a higher level until the end of the observation period. In Germany, the process of financialization started much later – in the beginning of the 1990s – and followed a much more gradual transition, which is perfectly mirrored by the development of income shares: from the 1990s onwards, the rentiers’ income share gradually increased over time. [ABSTRACT FROM PUBLISHER]

Frick J. R. and Goebel J. Regional income stratification in unified Germany using a Gini decomposition approach, Regional Studies. Using representative micro data from the German Socio-Economic Panel Study (SOEP), this paper delivers new insights into the development of income inequality and regional stratification in Germany after unification. This paper applies a new method for detecting social stratification by a decomposition of the Gini index that yields the obligatory between- and within-group components as well as an 'overlapping' index for the different sub-populations. It is found that East Germany is still a stratum on its own when using post-government income, but since 2001 no longer is when using pre-government income. These results remain stable when using alternatively defined regional classifications... [ABSTRACT FROM AUTHOR]

This paper compares recent developments in income inequality in Canada, Germany, Sweden, the United Kingdom, and the United States. In addition to describing cross-national variation in changes in income inequality, the paper examines different explanatory factors for these recent developments. The findings reported indicate that there is substantial cross-national variation, not only with regard to the level of inequality, but furthermore with regard to changes in inequality. The results indicate that the equalizing effect of welfare state redistribution did not decrease in all countries. By contrast, in all countries there was a universal tendency towards increased inequality in the pre-tax and transfer distribution, although the magnitude of the change differs from country to country. Even though a polarization of the earnings distribution is reported, the results still give no support to cross-national convergence with regard to income inequality during the 1980s. [ABSTRACT FROM AUTHOR]

This article presents a cross-cultural evidence on the effects of resources in relation to the choice of a distribution principle in the U.S., Sweden and Germany. Three rules of allocation which have been the topics of theoretical discussion and research are to each one according to their contribution, to each one according to their need, and to each one equally. Social psychologists have been concerned with discovering factors which contribute to the adoption of one rule over the other two. The dependent variable, which was the choice of allocation rule, was operationalized in two ways, such as that subjects in three of these studies were asked to indicate their preferences for rules, while in the other three the rules were evaluated in terms of their justice. Preferences were investigated for distribution rules in two populations, namely undergraduate students at Temple University and members of Rotary Club, an organization of business people. Among the latter there was a tendency to prefer the criterion of contribution over equality, no matter which resource was allocated. Among students this preference was limited to distribution of money and status or prestige. With regard to information, students preferred distribution by the need principle.