belonging to the upper social class
A study by the Institute of German Economics (IW) from 2021 examined the income from which one belongs to the social upper class. The study is based on the Socio-Economic Panel (SOEP), a long-term household survey that has been conducted since 1984. Around 35,000 people from 19,000 representative households are currently being surveyed. The latest income data is from 2018.
According to the study, single households in Germany with a monthly net income of 3,700 euros or more are among the richest 10 percent in the country. If you earn at least 4,560 euros as a single person, you already belong to the richest five percent – and from 7,190 euros even to the richest one percent.
Couples who live in a household without children belong to the richest tenth from a joint net income of 5,550 euros and from a net income of 10,790 to the richest one percent of society. The fact that couples have to earn less together to belong to the upper class can be explained by the fact that the costs for the individual fall when living together.
Distinction between DINK(Y)s and HIKOs
The study also differentiates between double-income couples without children (Double Income, No Kids (Yet), DINK(Y)s for short) and couples who have a high income, do not yet receive a pension and whose children no longer live in the same household (High Income, Kids Out, HIKOs for short). The DINK(Y)s make up around 4.6 percent of German households, the group of HIKOs around 9.3 percent. Both groups are overrepresented in the top ten percent. In this income bracket, 11.4 percent are DINKYS and 17.2 percent are HIKOs. The effect is even more pronounced in the top five and top percent. Those who belong to one of the two groups have the best chance of belonging to the top income group. However, there are hardly any single parents among the top earners.
Income limit has increased since 2016
According to IW, the researchers have noticed an increase in income limits in recent years. In 2016, being single was already one of the richest ten percent with 3,440 euros net per month. Judith Niehues, economist at the IW, emphasizes in the press release that the nominal income limit for the top ten percent has increased by almost eight percent within two years. “However, the median income rose even more strongly, at just under nine percent,” according to the economist.
M. Wieser / Editor finanzen.net
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