German citizens show increasing satisfaction, but disparities remain

Germans have reported higher levels of life satisfaction in recent years, with 2021 marking the highest satisfaction since 2004. However, significant differences persist, particularly in health-related aspects, based on income and gender.

According to data from the German Institute for Economic Research (DIW Berlin), the overall life satisfaction of citizens in Germany has risen over the past two decades. Survey results from 2021 revealed that respondents rated their life satisfaction higher than ever before since the survey began in 2004. However, these positive trends are not uniform across the population, as the survey data based on the Socio-Economic Panel (SOEP) from 2004 to 2021 shows.

Income and health disparities

A stark contrast exists between citizens in the lower and upper income brackets. Those in the lower income third are significantly less satisfied in all aspects of life compared to those in the upper income third. Although general satisfaction with health has remained relatively stable, satisfaction in areas such as work, health, and income has seen slight improvements. Notably, satisfaction with income has increased more significantly, coinciding with a roughly ten percent rise in real wages, as highlighted by study author Theresa Entringer.

Differences by income, gender, and family status

Despite the overall increase in life satisfaction, substantial differences remain. Individuals in the lower income bracket are far less satisfied with their health compared to those in the highest income bracket. Similarly, childless individuals report greater satisfaction than parents. Entringer notes that lower-income individuals tend to have poorer health, and parents often face higher stress levels due to factors such as poorer sleep, less time for recovery, and financial difficulties.

The gap in income satisfaction between men and women has narrowed by half, yet a gender gap persists, according to the study authors. Additionally, the health satisfaction gap between the sexes remains considerable.

Policy recommendations

Study author Daniel Graeber points out that more satisfied individuals tend to have better social relationships, higher productivity, and longer life expectancy. Based on these findings, the study authors recommend that policymakers improve childcare support, simplify the application process for social benefits, and increase the visibility of low-threshold support services.

About German Economic Institute, Berlin

As one of the largest economic institutes, the German Institute for Economic Research (DIW) in Berlin is best known for its economic barometer. Almost two-thirds of it is financed by the federal and state governments. The rest comes largely from project funding and contract research for public institutions and companies.