May 24, 2019
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New paper on top incomes shares in the Netherlands

The new WID.word Working paper 2019/2, “Top Incomes, Income and Wealth Inequality in the Netherlands: The first 100 Years 1914–2014 – what’s next?” by Wiemer Salverda, presents in 30 points both an update and four different extensions to the  series of the top shares of fiscal income. The series are extended to 2013 and 2014.

The main findings for the period since 2001 are:

1) that income inequality – as measured by the top incomes, but also the Gini coefficient – 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.