Mehr Ungleichheit – weniger politische Teilhabe. WSI-Verteilungsbericht 2025

This year’s report on the distribution of income examines the development of income inequality in Germany from 2010 to 2022 and its political implications. Based on data from the GSOEP and the WSI Labour Force Survey, it shows that income inequality remained relatively stable until the mid-2010s but rose from 2018 onwards. Poverty rates increased markedly, while income wealth remained stable overall. Politically, this reinforces social divisions: Lower income groups have less trust in key democratic institutions and are less likely to participate in elections. These developments could prove to be a breeding ground for populist forces such as the AfD. Politically, measures to strengthen good employment, targeted financial transfers for poor people, and higher taxation of top incomes and wealth therefore appear necessary. All these reforms are important to ensure the social participation of all population groups and can help to counteract tendencies that weaken democracy.