1950 1988
Class
(Dfl 1000)
Frequency
(1000)
Frequency
density
Class
(Dfl 1000)
Frequency
(1000)
Frequency
density
< 1 343 343 < 2 334 167
2 544 544 4 185 92
3 909 909 6 192 96
4 618 618 8 197 98
5 261 261 10 193 96
6 136 136 12 181 90
7 79 79 14 163 82
8 49 49 16 151 76
9 33 33 18 138 69
10 23 23 20 149 74
15 53 11 22 173 86
20 20 4 24 221 110
50 23 1 26 267 134
100 4 0 28 288 144
100 1 0 30 294 147
32 291 146
34 302 151
36 289 144
38 237 118
40 224 112
45 384 77
50 257 51
60 257 26
70 118 12
80 65 6
90 37 4
100 22 2
150 50 1
200 10 0
200 8 0

These data are not comparable, and some aspects are a bit less relevant for our objectives. Apart from the difference in independents, the 1950 distribution excludes females, and the 1988 distribution contains parttimers while the number of parttimers has strongly increased compared to 1950. In both cases it are incomes, and not just labour earnings. However, we can see how far we get.

Table 22 contains a summary review, with both the numbers of persons involved, the total and average income (in currency of the relevant year). It appears that by dropping the lowest 8 classes of the 1988 distribution we are better approximating the situation without the parttimers. This then is used for estimation of the lognormal productivity distributions that are used in the illustrations in the body of the text.

Table 22: Summary of the Dutch income distributions
for 1950 and 1988

Number of persons (thousands) Total income (Dfl million) Average income (Dfl thousand)
1950 3096 10993 3.5
1988 with the first 8 classes excluded 4081 154120 37.7
1988 5677 165460 29.1

Program used in the analysis on exposed and sheltered sectors

This program uses the Applied General Equilibrium routine of the Economics Pack (Colignatus (1999)), which routine is based on work of Asahi Noguchi and Silvio Levy, see the chapter in Varian (1993). It is nice to show how simple modeling actually can be made.

Needs[“Economics`Pack`”]

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Economics[“AGE`”]