Inequality of earnings and housing costs – developments between and within regions

Abstract Household well-being is strongly influenced by changes in income – but real income is strongly determined by housing costs. The evolution of inequalities in both variables largely determines the development of living conditions between households. In this paper, we look at inequality trends...

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Main Authors: Philipp Breidenbach, Sandra Schaffner
Format: Article
Language:English
Published: SpringerOpen 2025-01-01
Series:Journal for Labour Market Research
Subjects:
Online Access:https://doi.org/10.1186/s12651-024-00390-x
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author Philipp Breidenbach
Sandra Schaffner
author_facet Philipp Breidenbach
Sandra Schaffner
author_sort Philipp Breidenbach
collection DOAJ
description Abstract Household well-being is strongly influenced by changes in income – but real income is strongly determined by housing costs. The evolution of inequalities in both variables largely determines the development of living conditions between households. In this paper, we look at inequality trends between 2008 and 2017 from a regional perspective – between and within regions. While neighborhood earnings inequality has generally declined slightly, it is rising within Germany’s largest cities. On the other hand, inequality in rents has less declined within those cities than in the rest of Germany, corresponding to price increases in poorer neighborhoods, too. Households in these poor neighborhoods thus suffer from a below-average earnings development, while it seems that the main costs caused by new rentals increase similar to the rest of the city.
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institution Kabale University
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publishDate 2025-01-01
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series Journal for Labour Market Research
spelling doaj-art-c36846316a60496cb4f53169b3bff0e52025-01-26T12:19:30ZengSpringerOpenJournal for Labour Market Research2510-50272025-01-0159111410.1186/s12651-024-00390-xInequality of earnings and housing costs – developments between and within regionsPhilipp Breidenbach0Sandra Schaffner1RWI – Leibniz Institute for Economic ResearchRWI – Leibniz Institute for Economic ResearchAbstract Household well-being is strongly influenced by changes in income – but real income is strongly determined by housing costs. The evolution of inequalities in both variables largely determines the development of living conditions between households. In this paper, we look at inequality trends between 2008 and 2017 from a regional perspective – between and within regions. While neighborhood earnings inequality has generally declined slightly, it is rising within Germany’s largest cities. On the other hand, inequality in rents has less declined within those cities than in the rest of Germany, corresponding to price increases in poorer neighborhoods, too. Households in these poor neighborhoods thus suffer from a below-average earnings development, while it seems that the main costs caused by new rentals increase similar to the rest of the city.https://doi.org/10.1186/s12651-024-00390-xRegional disparitiesInequality of earnings and housing costs
spellingShingle Philipp Breidenbach
Sandra Schaffner
Inequality of earnings and housing costs – developments between and within regions
Journal for Labour Market Research
Regional disparities
Inequality of earnings and housing costs
title Inequality of earnings and housing costs – developments between and within regions
title_full Inequality of earnings and housing costs – developments between and within regions
title_fullStr Inequality of earnings and housing costs – developments between and within regions
title_full_unstemmed Inequality of earnings and housing costs – developments between and within regions
title_short Inequality of earnings and housing costs – developments between and within regions
title_sort inequality of earnings and housing costs developments between and within regions
topic Regional disparities
Inequality of earnings and housing costs
url https://doi.org/10.1186/s12651-024-00390-x
work_keys_str_mv AT philippbreidenbach inequalityofearningsandhousingcostsdevelopmentsbetweenandwithinregions
AT sandraschaffner inequalityofearningsandhousingcostsdevelopmentsbetweenandwithinregions