SHARE
COPY LINK

WEALTH

Richest in Germany own around two thirds of country’s wealth

Germany's already high level of wealth inequality has been significantly underestimated, according to a new study.

Richest in Germany own around two thirds of country's wealth
Photo: DPA

The German Institute for Economic Research (DIW) has found that the richest one percent in Germany own 35 percent of the total wealth in Germany – instead of just under 22 percent as previously thought, reported Spiegel on Wednesday.

And the top 10 percent of the population do not own 59 percent of total assets, as previously estimated – but around two thirds or 66 percent.

To put it into context, nobody in the bottom 50 percent of the German population has a net worth over €22,800. On average, the poorest 50 percent of the German population has a net worth of €3,700.

Moreover, the so-called Gini coefficient (used to measure inequality) is higher in Germany than previously thought. It is 0.81 instead of 0.78. If this number is zero, all households in a society would have an equally high income. If it is 1, the entire income goes to a single household, while everyone else receives nothing.

“Germany's already high wealth inequality has been significantly underestimated,” said Johannes König, one of the authors. “We are now seeing for the first time a more realistic picture of the distribution at the top.”

READ ALSO: This is how many millionaires live in Germany

Millionaires significantly more satisfied than the rest of the population

DIW researchers developed took a closer look at the group of wealthy millionaires in Germany.

This group includes an above-average number of men (69 percent) who are older and better educated than the average population, and who live for the most part in western Germany. Around three quarters of the millionaires are self-employed. A large part of their wealth is invested in company shares.

According to Zeit Online, the respondents earn more than €7,600 net per month, more than three times the average. Only 14 percent have a migration background. For the rest of the population this applies to every fourth person.

Perhaps unsurprisingly, scientists found that wealthy millionaires are significantly more satisfied than the rest of the population. Only with regard to leisure time was satisfaction lower.

READ ALSO: Who belongs to the top 10 percent of earners in Germany?

According to the authors, this is due to the significantly higher workload. The survey found millionaires work an average of 47 hours a week – around 10 hours more than the rest of the population.

Member comments

Log in here to leave a comment.
Become a Member to leave a comment.
For members

LIVING IN GERMANY

Living in Germany: Battles over Bürgergeld, rolling the ‘die’ and carnival lingo

From the push to reform long-term unemployment benefits to the lingo you need to know as Carnival season kicks off, we look at the highlights of life in Germany.

Living in Germany: Battles over Bürgergeld, rolling the 'die' and carnival lingo

Deadlock looms as debates over Bürgergeld heat up 

Following a vote in the Bundestag on Thursday, the government’s planned reforms to long-term unemployment benefits are one step closer to becoming reality. Replacing the controversial Hartz IV system, Bürgergeld (or Citizens’ Allowance) is intended to be a fair bit easier on claimants.

Not only will the monthly payment be raised from €449 to €502, but jobseekers will also be given a grace period of two years before checks are carried out on the size of their apartment or savings of up to €60,000. The system will also move away from sanctions with a so-called “trust period” of six months, during which benefits won’t be docked at all – except in very extreme circumstances. 

Speaking in parliament, Labour Minister Hubertus Heil (SPD) said the spirit of the new system was “solidarity, trust and encouragement” and praised the fact that Bürgergeld would help people get back into the job market with funding for training and education. But not everyone is happy about the changes. In particular, politicians from the opposition CDU/CSU parties have responded with outrage at the move away from sanctions.

CDU leader Friedrich Merz has even branded the system a step towards “unconditional Basic Income” and argued that nobody will be incentivised to return to work. 

The CDU and CSU are now threatening to block the Bürgergeld legislation when it’s put to a vote in the Bundesrat on Monday. With the conservatives controlling most of the federal states – and thus most of the seats in the upper house – things could get interesting. Be sure to keep an eye out for our coverage in the coming weeks to see how the saga unfolds. 

Tweet of the week

When you first start learning German, picking the right article to use can truly be a roll of the “die” – so we’re entirely on board with this slightly unconventional way to decide whether you’re in a “der”, “die”, or “das” situation. (Warning: this may not improve your German.) 

Where is this?

Photo: picture alliance/dpa | Boris Roessler

Residents of Frankfurt am Main and the surrounding area will no doubt recognise this as the charming town of Kronberg, which is nestled at the foot of the Taunus mountains.

This atmospheric scene was snapped on Friday morning, when a drop in temperatures saw Kronberg and surrounding forests shrouded in autumnal fog.

After a decidedly warm start to November, the mercury is expected to drop into single digits over the weekend. 

Did you know?

November 11th marked the start of carnival season in Germany. But did you know that there’s a whole set of lingo to go along with the tradition? And it all depends on where you are. First of all, the celebration isn’t called the same thing everywhere. In the Rhineland, it’s usually called Karneval, while people in Bavaria or Saxony tend to call it Fasching. Those in Hesse and Saarland usually call it Fastnacht. 

And depending on where you are, there are different things to shout. The ‘fools call’ you’ll hear in Cologne is “Alaaf!” If you move away from Cologne, you’ll hear “Helau!” This is the traditional cry in the carnival strongholds of Düsseldorf and Mainz, as well as in some other German cities.

In the Swabian-Alemannic language region in the southwest of the country, people yell “Narri-Narro”, which means “I’m a fool, you’re a fool”. In Saarland at the French border, they shout “Alleh hopp!”, which is said to originate from the French language. 

Lastly, if someone offers you a Fastnachtskrapfe, say yes because it’s a jelly-filled carnival donut. And if you’re offered a Bützchen? It’s your call, but know that it’s a little kiss given to strangers!

SHOW COMMENTS