Component 1: Index of Income Distribution

Definition

This component measures the inequality in income distribution in Germany. Therefore the Gini-Coefficient of the annual net-household-equivalent-income of the population  (private households) is taken. The Gini-Index is standardized: 2000 = 100.

Effect on the NWI:

Description and meaning of the component

The income distribution is important as a weighting factor (the only one in the NWI) for private consumption expenditure, i.e. component 2.

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Development of the component

Index of Income distribution

(Gini-Index, micro census/SOEP)

  • Source: DIW Berlin/Statistisches Bundesamt, graphic account by FEST/FFU