Social Policy and Distribution of Income and Wealth

In accordance with its legal mandate, the German Council of Economic Experts examines regularly the formation and distribution of income and wealth. The German Council of Economic Experts analyses, among other things, how fiscal and social policies affect the various distribution measures. The results of these analyses are published every second year in a chapter of the Annual Report.

Social policy in particular is a decisive determinant of the distribution of income and wealth. Social systems are designed to ensure sufficient income in the event of illness, unemployment or old age. Education policy in particular influences the income distribution of tomorrow. In addition, the German Council of Economic Experts regularly analyses the development of the labour market, as opportunities on the labour market and earned income have a significant impact on inequality.