We study inter-temporal changes in poverty for Germany from year 1978 to 2003,
and we employ the bootstrap method to test for statistical significance of
results. All results are decomposed by household type and region. Poverty
estimates are particularly high for single parents. Most striking, however, is
the poverty divide between the old and newly-formed German Federal States,
with poverty being significantly higher in the latter. We conduct a nonlinear
Oaxaca-Blinder decomposition to quantify the separate contribution of regional
differences in households’ characteristics to the probability of being poor.