Introduction to Germany’s Economic Elite
The sociologist Michael Hartmann, an emeritus professor at Darmstadt University of Technology, has examined the German Executive class in the past 150 years and tries to find out who ends up in top company positions and why. Hartmann said that the results surprised him. "To date, more than four-fifths of Germany’s economic elite have come from the three to four percent of the population," he said.
The ‘Right’ Social Background
Hartmann said there was a slight shift between 1907 and 1927, with more Germans from lower classes being able to climb the social ladder. "But in the following almost 100 years," he said, the proportion of those from lower social backgrounds who made it upwards increased by only about 2 1/2%. In the past ten years, companies have introduced diversity, stock, and inclusion programs (DEI) to create a level competitive conditions for participating in the labor market for everyone.
Influence of Social Background on Career Success
According to a recently carried out survey by the lobby group, the technology sector Bitkom now has two-thirds of German companies with 500 or more employees now formal DEI goals, and about the other third are planning or discussing such initiatives. However, when it comes to influential management positions, the elite sticks to adhering to its own. But in recent years, more women have entered management positions – largely thanks to the legally prescribed gender quota, said Hartmann.
Class Distortion in Education
In Germany, the class distortion begins early, namely with the type of education. Children of academics are much easier to access resources and support than children of families of the working class. Accordingly, a German study by the British specialist recruitment company Pagegroup found that about 80% of children from academic households visit the university compared to only 25% of children from non-academic houses.
The Role of Merit in Career Advancement
Without a university degree, said Hartmann, it was almost impossible to achieve the highest levels of the business world. But even if elites have the same academic qualifications, their career path is usually faster and more smooth than those with other backgrounds. After the analysis of several cohorts of Germans with academic degrees, Hartmann found that children of managing directors who held doctoral students, 17 times more often made it to the board of the 400 largest company in Germany, to the same extent.
Overcoming Social Mobility Boundaries
If social origin largely determines career success, this affects more than only individuals: it slows down the economic growth that Pagegroup found and calculates the costs of the lack of social mobility in Germany to around € 25 billion ($ 29 billion) in GDP growth per year. A McKinsey study found that GDP in the 27 EU countries could increase by 9% – or € 1.3 trillion – if social mobility were improved.
Challenging the Dominance of Elites
How can the dominance of elites in Germany be challenged? Hartmann said the answer could only be legally binding quotas to overcome all kinds of discrimination and class distortion. These may be unpopular, he said, "but in my experience, nothing else will work." Although the media are regularly highlighted, such stories are introduced so often that "people believe they are often believed".
