LIFETIME INCOME-REDISTRIBUTION BY SOCIAL-SECURITY

This paper discusses the redistributive impact of the Dutch social sec urity system on lifetime basis. Net benefits appear to be positive for the birth generations up to 1960. Social insurances show a declining net benefit, whereas for occupational pensions the reverse holds. It i s generally assumed that flat-rated social security schemes are more r edistributive ones than wage-related schemes. However, the Dutch socia l security system shows that on a lifetime basis the redistributive im pact of flat-rated general insurances does not necessarily largely dif fer from the wage-related employee insurances. Social assistance schem es result in a very large income redistribution in view of the small a mounts involved. Social insurances and social assistance schemes have an income equalizing effect. On the contrary, occupational pensions in crease income inequality.