Wealthy, Wealthier, Wealthiest − The Role of Inheritances and Parental Background for the Structure of the Wealth Distribution and Top Wealth.

The formation and reproduction of wealth, particularly in the top segment of the wealth distribution, is a phenomenon that has been scarcely researched in Germany to date. With the newly established SOEP Sample of Wealthy Individuals (SOEP-P), a globally unique data set is now available for the first time, comprising more than 1,100 net euro millionaires. Thanks to its complete integration into the SOEP main sample of German households (SOEP Core), this dataset enables systematic comparative analyses between high-net-worth individuals and the population cross-section for the first time.

The project analyses the distribution of wealth in Germany in four consecutive work packages: First, machine learning is used to analyse the characteristics of different wealth segments from the bottom 50 percent to the top one percent of the distribution. In the second step, the influence of inheritances on wealth distribution will be analysed. The third work package analyses how given factors (such as family background) and self-determined decisions (such as education and savings behaviour) affect wealth accumulation. Finally, the results are summarised and policy recommendations are derived.