179 - Preferences for redistribution in the Netherlands

DNB Working Papers
Date 23 September 2008
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. JEL Codes: D31, D63, H23, H55, P16. Keywords: Redistribution, social security.