Social security and the income distribution: a spatio-temporal analysis for the Netherlands

One of the aims of Dutch regional policy is the reduction of existing differences in personal incomes per capita. Social security is shown to have a significant effect on the interregional distribution of incomes. Some regions gain, some regions lose, while the overall interregional distribution becomes more equal. The paper briefly discusses the methodology of the regionalization of taxes and contributions paid to finance social security as well as the benefits paid through 27 different social programs. The empirical outcomes are analyzed for the 11 Dutch provinces for 8 subsequent years (1976-1986) fur 6 groups of comparable programs using correlation analysis and analysis of variance.