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Preferences for redistribution in the Netherlands

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  • Jan Kakes
  • Jasper de Winter

Abstract

We investigate the determinants of Dutch households' preferences for income redistribution, using survey data. Our results show that support for redistributive policies is related to self-interest, exposure to misfortune and risk-aversion. In addition, people who believe that prosperity is primarily due to luck rather than hard work tend to favour redistribution, indicating that equal opportunities are considered important. Interestingly, support for redistributive policies is positively related to education, while the impact of age is ambiguous. This is an important outcome, as it implies that globalisation and skill-biased technological progress may put less pressure on the Dutch social security system than previously assumed.

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File URL: http://www.dnb.nl/binaries/WP%20179-2008%20-%20Preferences%20for%20redistribution%20in%20the%20Netherlands_tcm46-188335.pdf
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Bibliographic Info

Paper provided by Netherlands Central Bank, Research Department in its series DNB Working Papers with number 179.

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Date of creation: Sep 2008
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Handle: RePEc:dnb:dnbwpp:179

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Keywords: Redistribution; social security.;

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References

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  1. E. Berman & J. Bound & S. Machin, 1997. "Implications of skill-biased technological change: international evidence," LSE Research Online Documents on Economics 20314, London School of Economics and Political Science, LSE Library.
  2. Bénabou, Roland & Ok, Efe, 1997. "Social Mobility and the Demand for Redistribution : the POUM Hypothesis," IDEI Working Papers 78, Institut d'Économie Industrielle (IDEI), Toulouse, revised 1999.
  3. Alberto Alesina & Eliana La Ferrara, 2001. "Preferences for Redistribution in the Land of Opportunities," NBER Working Papers 8267, National Bureau of Economic Research, Inc.
  4. Bas Jacobs, 2003. "The lost race between schooling and technology," CPB Discussion Paper 25, CPB Netherlands Bureau for Economic Policy Analysis.
  5. Meltzer, Allan H & Richard, Scott F, 1981. "A Rational Theory of the Size of Government," Journal of Political Economy, University of Chicago Press, vol. 89(5), pages 914-27, October.
  6. La Ferrara, Eliana & Alesina, Alberto, 2005. "Preferences for Redistribution in the Land of Opportunities," Scholarly Articles 4552533, Harvard University Department of Economics.
  7. A. Dupuy, 2007. "Will the skill-premium in the Netherlands rise in the next decades?," Applied Economics, Taylor & Francis Journals, vol. 39(21), pages 2723-2731.
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Cited by:
  1. Federica Teppa & Corrie Vis, 2012. "The CentERpanel and the DNB Household Survey: Methodological Aspects," DNB Occasional Studies 1004, Netherlands Central Bank, Research Department.

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