Top Incomes, Income and Wealth Inequality in the Netherlands: The First 100 Years 1914–2014 \textendash What's Next?. Salverda, W. Technical Report 2019/02, World Inequality Database, 2019. ![Top Incomes, Income and Wealth Inequality in the Netherlands: The First 100 Years 1914–2014 \textendash What's Next? [pdf]](https://bibbase.org/img/filetypes/pdf.svg "pdf")
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Data file abstract bibtex This paper presents in 30 concise points and 26 tables both an update and four different extensions to the by now traditional series of the top-income shares. The update concerns the evolution of top incomes in the Netherlands, which now includes the years 2013 and 2014, going beyond the previous coverage up to 1999 in a joint work (Atkinson and Salverda, 2003, 2005; Salverda and Atkinson, 2007) and up to 2012 in a brief WID note (Salverda, 2013). The text of this paper focuses on the years 2001- 2014 while the appendix includes the same type of graphs as before (Atkinson and Salverda, 2003) but now covering the full 100-year period. The first of the four extensions adds detail on the income distribution below the top including a take on the middle class, in line with the current approach of the World Inequality Database, albeit for the period 2001-2014 only. The second extension specifies the effects on fractiles of the distribution that are exerted by the choice of the unit of observation: fiscal unit, household, or individual. The third extension concerns the distribution of wealth, on its own but also in conjunction with the distribution of incomes. It pays particular attention to 1) the position of households depending on labour earnings, who are the majority of all households and receive the large majority of total income, and 2) mortgage debt, which plays a strong role in the Netherlands. Unfortunately, the wealth data are not available for years earlier than 2006. The main findings for the period since 2001 are that 1) that income inequality \textendash as measured by the top incomes, but also the Gini coefficient \textendash has increased, 2) that all of this inequality growth (or even more) can be attributed to an increasingly unequal distribution of wage earnings, 3) which in turn is largely due to the growing incidence of second earners, be it within a tax unit or a household, 4) while at the same time wealth inequality is extremely high in the Netherlands and has also increased rapidly in recent years, both partly due to the large role of (mortgage) debt. Along the way, I add some observations about estimating lower and upper bounds to the Gini coefficient including missing `non-filers', and about the cohesion of the Middle-40% as a fractile, because its upper end, the 9th decile, often begs to differ from the 6th to 8th deciles, briefly considering another definition for the Middle class and its rather different outcomes. Finally, the fourth extension of the paper concerns issues for consideration when looking to the future beyond 2014, "the second century" of top incomes and wealth, with regard to available data on income and wealth in the Netherlands, as well as some issues for further discussion with regard to the integration of inequalities of incomes and wealth with the national accounts (DINA), which figures high on the research agenda of the WID. In my view, we would be well advised to combine and compare different approaches \textendash tax units, individuals and households \textendash, to think about the household as, in practice, the inevitable unit of analysis for the wealth distribution, and to seek radical improvement of the statistical observation of primary incomes other than wage earnings, in particular for working towards DINA.
@techreport{Salverda_2019_TopIncomesIncomeWealthInequality,
type = {{{WID}}.World {{Working Paper Series}}},
title = {Top Incomes, Income and Wealth Inequality in the {{Netherlands}}: The First 100 Years 1914\textendash 2014 \textendash{} What's Next?},
author = {Salverda, Wiemer},
year = {2019},
number = {2019/02},
institution = {{World Inequality Database}},
abstract = {This paper presents in 30 concise points and 26 tables both an update and four different extensions to the by now traditional series of the top-income shares. The update concerns the evolution of top incomes in the Netherlands, which now includes the years 2013 and 2014, going beyond the previous coverage up to 1999 in a joint work (Atkinson and Salverda, 2003, 2005; Salverda and Atkinson, 2007) and up to 2012 in a brief WID note (Salverda, 2013). The text of this paper focuses on the years 2001- 2014 while the appendix includes the same type of graphs as before (Atkinson and Salverda, 2003) but now covering the full 100-year period. The first of the four extensions adds detail on the income distribution below the top including a take on the middle class, in line with the current approach of the World Inequality Database, albeit for the period 2001-2014 only. The second extension specifies the effects on fractiles of the distribution that are exerted by the choice of the unit of observation: fiscal unit, household, or individual. The third extension concerns the distribution of wealth, on its own but also in conjunction with the distribution of incomes. It pays particular attention to 1) the position of households depending on labour earnings, who are the majority of all households and receive the large majority of total income, and 2) mortgage debt, which plays a strong role in the Netherlands. Unfortunately, the wealth data are not available for years earlier than 2006. The main findings for the period since 2001 are that 1) that income inequality \textendash{} as measured by the top incomes, but also the Gini coefficient \textendash{} has increased, 2) that all of this inequality growth (or even more) can be attributed to an increasingly unequal distribution of wage earnings, 3) which in turn is largely due to the growing incidence of second earners, be it within a tax unit or a household, 4) while at the same time wealth inequality is extremely high in the Netherlands and has also increased rapidly in recent years, both partly due to the large role of (mortgage) debt. Along the way, I add some observations about estimating lower and upper bounds to the Gini coefficient including missing `non-filers', and about the cohesion of the Middle-40\% as a fractile, because its upper end, the 9th decile, often begs to differ from the 6th to 8th deciles, briefly considering another definition for the Middle class and its rather different outcomes. Finally, the fourth extension of the paper concerns issues for consideration when looking to the future beyond 2014, "the second century" of top incomes and wealth, with regard to available data on income and wealth in the Netherlands, as well as some issues for further discussion with regard to the integration of inequalities of incomes and wealth with the national accounts (DINA), which figures high on the research agenda of the WID. In my view, we would be well advised to combine and compare different approaches \textendash{} tax units, individuals and households \textendash, to think about the household as, in practice, the inevitable unit of analysis for the wealth distribution, and to seek radical improvement of the statistical observation of primary incomes other than wage earnings, in particular for working towards DINA.},
keywords = {Data Sources: Wealth Inequality Trends},
url_file = {Salverda_2019_TopIncomesIncomeWealthInequality.pdf},
url_data_file = {https://bibbase.org/network/publication/salverda-topincomesincomeandwealthinequalityinthenetherlandsthefirst100years19142014textendashwhatsnextdatafile-2019}
}
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The update concerns the evolution of top incomes in the Netherlands, which now includes the years 2013 and 2014, going beyond the previous coverage up to 1999 in a joint work (Atkinson and Salverda, 2003, 2005; Salverda and Atkinson, 2007) and up to 2012 in a brief WID note (Salverda, 2013). The text of this paper focuses on the years 2001- 2014 while the appendix includes the same type of graphs as before (Atkinson and Salverda, 2003) but now covering the full 100-year period. The first of the four extensions adds detail on the income distribution below the top including a take on the middle class, in line with the current approach of the World Inequality Database, albeit for the period 2001-2014 only. The second extension specifies the effects on fractiles of the distribution that are exerted by the choice of the unit of observation: fiscal unit, household, or individual. The third extension concerns the distribution of wealth, on its own but also in conjunction with the distribution of incomes. It pays particular attention to 1) the position of households depending on labour earnings, who are the majority of all households and receive the large majority of total income, and 2) mortgage debt, which plays a strong role in the Netherlands. Unfortunately, the wealth data are not available for years earlier than 2006. The main findings for the period since 2001 are that 1) that income inequality \\textendash as measured by the top incomes, but also the Gini coefficient \\textendash has increased, 2) that all of this inequality growth (or even more) can be attributed to an increasingly unequal distribution of wage earnings, 3) which in turn is largely due to the growing incidence of second earners, be it within a tax unit or a household, 4) while at the same time wealth inequality is extremely high in the Netherlands and has also increased rapidly in recent years, both partly due to the large role of (mortgage) debt. Along the way, I add some observations about estimating lower and upper bounds to the Gini coefficient including missing `non-filers', and about the cohesion of the Middle-40% as a fractile, because its upper end, the 9th decile, often begs to differ from the 6th to 8th deciles, briefly considering another definition for the Middle class and its rather different outcomes. Finally, the fourth extension of the paper concerns issues for consideration when looking to the future beyond 2014, \"the second century\" of top incomes and wealth, with regard to available data on income and wealth in the Netherlands, as well as some issues for further discussion with regard to the integration of inequalities of incomes and wealth with the national accounts (DINA), which figures high on the research agenda of the WID. In my view, we would be well advised to combine and compare different approaches \\textendash tax units, individuals and households \\textendash, to think about the household as, in practice, the inevitable unit of analysis for the wealth distribution, and to seek radical improvement of the statistical observation of primary incomes other than wage earnings, in particular for working towards DINA.","keywords":"Data Sources: Wealth Inequality Trends","url_file":"Salverda_2019_TopIncomesIncomeWealthInequality.pdf","url_data_file":"https://bibbase.org/network/publication/salverda-topincomesincomeandwealthinequalityinthenetherlandsthefirst100years19142014textendashwhatsnextdatafile-2019","bibtex":"@techreport{Salverda_2019_TopIncomesIncomeWealthInequality,\n type = {{{WID}}.World {{Working Paper Series}}},\n title = {Top Incomes, Income and Wealth Inequality in the {{Netherlands}}: The First 100 Years 1914\\textendash 2014 \\textendash{} What's Next?},\n author = {Salverda, Wiemer},\n year = {2019},\n number = {2019/02},\n institution = {{World Inequality Database}},\n abstract = {This paper presents in 30 concise points and 26 tables both an update and four different extensions to the by now traditional series of the top-income shares. 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The third extension concerns the distribution of wealth, on its own but also in conjunction with the distribution of incomes. It pays particular attention to 1) the position of households depending on labour earnings, who are the majority of all households and receive the large majority of total income, and 2) mortgage debt, which plays a strong role in the Netherlands. Unfortunately, the wealth data are not available for years earlier than 2006. The main findings for the period since 2001 are that 1) that income inequality \\textendash{} as measured by the top incomes, but also the Gini coefficient \\textendash{} has increased, 2) that all of this inequality growth (or even more) can be attributed to an increasingly unequal distribution of wage earnings, 3) which in turn is largely due to the growing incidence of second earners, be it within a tax unit or a household, 4) while at the same time wealth inequality is extremely high in the Netherlands and has also increased rapidly in recent years, both partly due to the large role of (mortgage) debt. Along the way, I add some observations about estimating lower and upper bounds to the Gini coefficient including missing `non-filers', and about the cohesion of the Middle-40\\% as a fractile, because its upper end, the 9th decile, often begs to differ from the 6th to 8th deciles, briefly considering another definition for the Middle class and its rather different outcomes. 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