This dissertation concerns itself with the empirical analysis of income inequality and wealth - two of the central components of income distribution. The main focus is on the investigation of the factors influencing income inequality in Germany. Several methods of regression-based decomposition are used to quantify the influence of microeconomic and macroeconomic factors on income inequality. The analysis is based on data collected by the German Socio-Economic Panel study (SŒP). In conclusion, it is shown that the degree of income inequality is mainly related to the duration of individual education. Wealth is investigated both in cross-section and in longitudinal analysis based on data from income tax statistics.