Inequality and Redistribution in the Netherlands

Arjan Lejour, Arjan Bruil, Celine van Essen, Wouter Leenders, Jan Mohlmann, Simon Rabate

Research output: Working paperDiscussion paperOther research output


This paper combines detailed administrative records on the universe of the Dutch population with national accounts aggregates to provide a thorough description of income inequality before and after taxation and government spending. Accounting for domestic and foreign retained earnings has a substantial impact on inequality, raising the top 10% share of pre-tax national income from 29% to 31%. Overall, the tax system is regressive due to high consumption taxes and a low tax burden on capital income. The entire reduction in inequality - the top 10% income share falls to 26% - comes from government spending that is targeted at the bottom of the distribution.
Original languageEnglish
Place of PublicationDen Haag
PublisherCPB Netherlands Bureau for Economic Policy Analysis
Number of pages48
Publication statusPublished - 25 Mar 2022


  • Inequality
  • Redistribution
  • Taxes
  • transfers
  • Netherlands


Dive into the research topics of 'Inequality and Redistribution in the Netherlands'. Together they form a unique fingerprint.

Cite this