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Measuring lifetime redistribution in Dutch collective arrangements

Harry ter Rele ()
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Harry ter Rele: CPB Netherlands Bureau for Economic Policy Analysis

No 79, CPB Document from CPB Netherlands Bureau for Economic Policy Analysis

Abstract: This paper assesses how the system of Dutch collective arrangements redistributes between the rich and the poor. It incorporates the full life cycle in the measurements, rather than only the annual effects, and includes a larger part of the arrangements than is usually the case. The measurements on redistribution are carried out using the level of educational attainment to classify the population. For an average, representative person of each level of education we measure, in terms of present values, the average net benefit from government. The results show that the net benefits are positive for the lower levels of education and negative for the higher levels. The figures indicate a sizable redistribution from the rich to the poor and a significant reduction of welfare inequality. The net effect on income inequality is, however, substantially smaller than when it is measured on an annual basis.

JEL-codes: D31 H24 H52 H53 (search for similar items in EconPapers)
Date: 2005-02
New Economics Papers: this item is included in nep-eec, nep-ltv and nep-pbe
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