Large statistical uncertainty concerning the percentages of high-net-worth households

Abstract

"Analysis on wealth inequality based on survey data usually suffers from under-coverage of high-net-worth individuals. Especially this group of persons is of high relevance given their substantial share of the total net worth. As there is no tax data available in Germany, the largest fortunes can only be simulated using 'rich lists'. Combining the German entries of the Forbes list with survey data creates an augmented data basis and the new estimates show an increase of the total net worth by between one third and 50 percent, depending on the scenario. Moreover, the share of the richest one percent of the population (about 400 000 households) increases from under one fifth to roughly one third. The estimates show that the share of the richest ten percent of the population is between 64 and 74 percent, again, depending on the scenario. These estimates are characterised by a high degree of uncertainty, which eventually can only be overcome by better data." (Author's abstract, IAB-Doku) ((en))

Cite article

Westermeier, C. & Grabka, M. (2015): Große statistische Unsicherheit beim Anteil der Top-Vermögenden in Deutschland. In: DIW-Wochenbericht, Vol. 82, No. 7, p. 123-133.