Wealth and savings : data and trends in the Netherlands

In this paper we examine trends in the cross-sectional wealth distribution. We use two wealth definitions: net worth and financial wealth. We use data from the Socio-Economic Panel, a representative panel survey conducted by Statistics Netherlands. First, we describe the information on wealth available in the SEP, and the problems with person- and item-non response. Moreover, we compare the SEP data with an external data source, the Income Panel Survey (IPS). The IPS has been constructed from administrative records (e.g. records from the wealth and income tax). We then analyze the trends in wealth inequality (the cross- sectional distribution of wealth), and in the age and income gradient of wealth holdings. Finally, we consider shortly some explanations for the observed pattern of wealth accumulation in the Netherlands. We especially focus on saving motive data which are available in the SEP.