February 21, 2005

Measuring lifetime redistribution in Dutch collective arrangements

Overheid dempt welvaartsverschillen aanzienlijk, ook gemeten over de levensloop

Press release
Belastingen, sociale premies en overheidsuitgaven zorgen voor een aanzienlijke demping van de verschillen in welvaart (gedefinieerd als het netto inkomen inclusief de baten van overheidsuitgaven, gemeten over het hele leven).

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Harry ter Rele

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.


Harry ter Rele