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Inequality and Inclusive Growth in Rich CountriesShared Challenges and Contrasting Fortunes$
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Brian Nolan

Print publication date: 2018

Print ISBN-13: 9780198807032

Published to Oxford Scholarship Online: July 2018

DOI: 10.1093/oso/9780198807032.001.0001

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PRINTED FROM OXFORD SCHOLARSHIP ONLINE (oxford.universitypressscholarship.com). (c) Copyright Oxford University Press, 2021. All Rights Reserved. An individual user may print out a PDF of a single chapter of a monograph in OSO for personal use. date: 27 July 2021

Understanding Rising Income Inequality and Stagnating Ordinary Living Standards in Germany

Understanding Rising Income Inequality and Stagnating Ordinary Living Standards in Germany

Chapter:
(p.153) 7 Understanding Rising Income Inequality and Stagnating Ordinary Living Standards in Germany
Source:
Inequality and Inclusive Growth in Rich Countries
Author(s):

Gerhard Bosch

Thorsten Kalina

Publisher:
Oxford University Press
DOI:10.1093/oso/9780198807032.003.0007

This chapter describes how inequality and real incomes have evolved in Germany through the period from the 1980s, through reunification, up to the economic Crisis and its aftermath. It brings out how reunification was associated with a prolonged stagnation in real wages. It emphasizes how the distinctive German structures for wage bargaining were eroded over time, and the labour market and tax/transfer reforms of the late 1990s-early/mid-2000s led to increasing dualization in the labour market. The consequence was a marked increase in household income inequality, which went together with wage stagnation for much of the 1990s and subsequently. Coordination between government, employers, and unions still sufficed to avoid the impact the economic Crisis had on unemployment elsewhere, but the German social model has been altered fundamentally over the period

Keywords:   inequality, living standards, dualization, middle incomes, collective bargaining, German social model

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