Why is the world unfair 1

Justice: This is how unfairly income is distributed in Germany

The gap between rich and poor is huge. Also in Germany. On the one hand, people in this country work for the statutory minimum wage of 8.84 euros per hour, on the other hand, there are corporate managers with annual salaries in the millions. The differences in income create heated debates about social injustice. It is true that inequality is part of a market economy, especially since income differences are the main incentive to make an effort.

But the salary differences do not always reflect performance. Because the starting conditions are by no means the same for all citizens. Factors such as origin, gender or migration background, which the individual cannot influence, play a role.

How fair are the income differences that are evident in Germany and in other countries? Economists from the Ifo Institute, together with their colleague Ravi Kanbur from Cornell University in the United States, examined the social conditions in 31 European countries as well as in the USA. The result of their study: In the Netherlands, Finland and Norway, income is distributed most fairly. Germany is also in a relatively good position. France and Great Britain are even better. In contrast, Romania, Lithuania and - in the last place - Italy bring up the rear in Europe when it comes to social fairness.