NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Social Security and Retirement in The Netherlands

Arie Kapteyn, Klaas de Vos

NBER Working Paper No. 6135*
Issued in August 1997
NBER Program(s):   AG    PE

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Compared to other industrialized countries, the labor force participation of the elderly in the Netherlands is very low. Moreover, it has fallen very fast over recent years. We discuss the incentives for employees to retire, arising from public schemes such as social security and disability insurance, and from private arrangements, such as early retirement and occupational pensions. In general, the generous replacement rates offered by these schemes act as powerful stimuli for retirement. Although Dutch research into the retirement effects of the earnings replacing schemes for the elderly was limited until the early nineties, there is now a fast growing literature on this. This literature confirms the findings in the current paper.

*Published: me Taxes, and Hours Restrictions in the Netherlands", Journal of Human Resources, Vol. 25, no. 3 (1990): 517-558. Published as "Social Security and Labor-Force Participation in the Netherlands", American Economic Review, Vol. 88, no.2 (May 1998): 164-167. With Bernard M. S. Van Praag, published as "Further Evidence on the Individual Welfare Function of Income: An Empirical Investigation in the Netherlands", European Economic Review, Vol. 4 (1973). With Arthur Van Soest and Isolde Woittiez, published as "Labor Supply, Inco

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