Merz: The Distribution of Income of Self-employed, Entrepreneurs and Professions
15
Measures of Inequality of the Distribution of Net Income in
Germany 1992: All working, Employees, Entrepreneurs and
Professions*
Table 3:
All Working |
Employees |
Entrepreneurs |
Professions* | |
Mean |
36.492 |
33.928 |
61.430 |
87.516 |
Gini |
0,42520 |
0,38669 |
0,63745 |
0,52990 |
Atkinson-Index | ||||
? = 1 |
0,33723 |
0,29985 |
0,56254 |
0,48280 |
? = 2 |
0,86086 |
0,85363 |
0,89964 |
0,85292 |
Quintile Shares (%) | ||||
1. Quintile |
3,58 |
3,87 |
1,91 |
1,60 |
2. Quintile |
10,67 |
11,55 |
5,44 |
6,21 |
3. Quintile |
16,29 |
17,45 |
9,54 |
13,89 |
4. Quintile |
23,03 |
24,33 |
16,38 |
24,11 |
5. Quintile |
46,43 |
42,79 |
66,73 |
54,19 |
90/10 ratio__________ |
_________34,3 |
27,6 |
_________101,9 |
________85,7 |
n |
80.074 |
67.415 |
8.368 |
4.291 |
N |
25.611.412 |
23.613.824 |
1.586.264 |
411.324 |
Net income = individual taxable income minus fixed income tax (yearly)
All working = employees and self-employed (entrepreneurs and professions*);
not included: income predominant from capital assets, let and lease, ther sources
Self-employed are divided in entrepreneurs (with profit income from agriculture and forestry and from
trading) and in professions* here as the independent (the number of independent persons are
by far dominated by the number of professions (Freie Berufe)
Due to sampling errors the total population N might deviate from the actual figure like in Table 2
Source: Income Tax Statistic 1992, Sample of Individual Incomes and Taxes,
Federal Statistical Office 1999, 1995; Own calculations
Measured by the mean as a simple measure of center, the spectrum ranges from a mean
yearly net income of 33.928 DM of all employees (sample n= 67.415) to a multiple of
ca. 2,6 of that with 87.516 DM for the professions.
Since the Gini-coefficient is sensitive for the income region with great population
density there are remarkable differences with regard to the middle income situation:
whereas for employees the Gini coefficient is about 0,3867 the most unequal
distribution is given for entrepreneurs with a Gini of 0,6375. This difference is more
important since the Gini coefficient only varies by small numbers 'normally'.
The Atkinson-Index is calculated for Table 3 with a relative small (? = 1) and a relative
high (? = 2) inequality aversion to cover a broad spectrum with a multitude of possible
normative evaluations. The Atkinson-index is sensitive to changings in the lower part of
the income distribution. The differences between the three working groups are dominant
with respect to a low inequality aversion. Together with the low income sensitivity of
the Atkinson-index in general, this indicates above all striking differences between the
distributions in their respective lower income parts.
The quintile shares describe the relation between the population share and their share of
the entire income cake. The above hints to differences above all within the lower
income parts which are enlighted by the quintile results: for entrepreneurs and
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