CONTENTS
Introduction to the Series = ⅷ
Preface = ⅹ
Dutch Terminology and Abbreviations = xii
PART ONE: INTRODUCTION = 1
1 Introduction = 3
1.1 Purpose and structure = 3
1.2 Social security = 5
1.3 Annual or lifetime income = 6
1.4 The notion of (re)distributive effects = 9
1.5 Measuring lifetime income and its inequality = 11
1.6 How the problem is tackled = 13
2 Overview of related studies = 15
3 Microsimulation = 25
3.1 Introduction = 25
3.2 Microsimulation: pros and cons = 26
3.3 The general structure of NEDYMAS = 33
4 Field of application: the Netherlands = 45
4.1 A bird's-eye view of the Dutch social security system = 45
4.2 The income concept = 51
4.3 The income unit = 53
4.4 Income standardization = 55
PART TWO: THE MICROSIMULATION MODEL = 59
5 The demographic module = 61
5.1 Introduction = 61
5.2 Immigration = 64
5.3 Emigration = 67
5.4 Old people's homes = 69
5.5 Mortality = 70
5.6 Marriage = 71
5.7 Divorce = 73
5.8 Dehabitation = 73
5.9 Cohabitation = 74
5.10 Splitting off = 75
5.11 Fertility = 76
5.12 The construction of a representative initial population = 78
6 The labour market and income formation module = 83
6.1 Introduction = 83
6.2 Education = 84
6.3 Changes in economic activity = 90
6.4 Labour income = 99
6.5 Taxes = 109
6.6 Initial level of education and economic activity of immigrants = 113
7 The social security module = 115
7.1 Introduction = 115
7.2 The General Old Age Pensions Act (AOW) = 116
7.3 The General Widows and Orphans Pensions Act (AWW) = 118
7.4 Family allowances = 120
7.5 The General Disablement Benefits Act (AAW) = 122
7.6 The Disablement Insurance Act (WAO) = 124
7.7 The Sickness Benefit Act (ZW) and Sickness Payments for Civil Servants (DSO) = 125
7.8 The Unemployment Insurance Act (WW) = 127
7.9 The Unemployment Provisions Act (WWV) = 129
7.10 The New Unemployment Insurance Act (NWW) = 130
7.11 The Provisions for Older and Partly Disabled Unemployed Employees (IOAW) = 131
7.12 The Supplementary Benefits Act (TW) = 132
7.13 The General Social Assistance Act (ABW) = 132
7.14 The Health Insurance Act (ZFW) = 134
7.15 The General Exceptional Medical Expenses Act (AWBZ) = 135
7.16 Private pensions for employees = 136
7.17 The Civil Servants Unemployment Benefit (WRO) = 136
7.18 Pension provisions for civil servants = 138
7.19 The Civil Servants Deduction Act (IW) = 140
7.20 Future premiums and benefits = 140
PART THREE: SIMULATION RESULTS = 143
8 Lifetime income redistribution by social security = 145
8.1 Introduction = 145
8.2 Vertical redistribution = l46
8.3 Horizontal redistribution = 175
8.4 Some variations = 203
9 Conclusions and summary = 213
9.1 Introduction = 213
9.2 Conclusions = 214
References = 221
Index = 235
