INEQUALITY

House ownership makes wealthy – especially in the West of Germany – The Forum New Economy Der Spiegel

One becomes wealthy in the Federal Republic with enterprises or real estate. But even 30 years after reunification, the East still lags behind the West when it comes to ownership of apartments and houses. This is shown in a study by DIW researchers commissioned by the Forum New Economy.

BY

THORE BECKMANN

PUBLISHED

29. SEPTEMBER 2020

READING TIME

1 MIN

Unlike labor and capital, the supply of land is absolutely limited. Whoever owns a piece can exclude other people from it. Real estate is also playing an increasingly important role in the growing inequality in the distribution of income and wealth. Instead of asking directly about wealth, the question would usually suffice: Are you still renting – or do you already own it?

This is shown by Charlotte Bartels and Carsten Schröder of the German Institute for Economic Research (DIW) in a study commissioned by the Forum for a New Economy initiative, which will be presented in Berlin on Tuesday before the anniversary of German unity. It is a study that reveals huge differences between East and West even 30 years after reunification.

….

The full article by Alexander Preker at Der Spiegel can be found here: Study on Wealth and Income

ABOUT INEQUALITY

KNOWLEDGE BASE

The rising gap between rich and poor has become a threat to social cohesion in most rich countries. To reverse this trend it will be crucial to better understand the importance of different drivers of income and wealth inequality.

ARTICLE OVERVIEW