This paper assesses how the system of Dutch collective arrangements redistributes between the rich and the poor. Its approach deviates from the way these issues are commonly dealt with by incorporating the full life cycle in the measurements rather than only the annual effects, and by including 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.
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Paper provided by CPB Netherlands Bureau for Economic Policy Analysis in its series CPB Documents with number
79.
Find related papers by JEL classification: D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies H52 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Education H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs
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References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
Jagadeesh Gokhale & Laurence J. Kotlikoff & Alexi Sluchynsky, 2002.
"Does it pay to work?,"
Working Paper
0206, Federal Reserve Bank of Cleveland.
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Jagadeesh Gokhale & Laurence J. Kotlikoff & Alexi Sluchynsky, 2002.
"Does It Pay to Work?,"
NBER Working Papers
9096, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted)
Cited by: (explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)