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The influence of labour flows on wage drift: an empirical analysis for The Netherlands

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  • Frank A. G. Den Butter
  • Florian Eppink

Abstract

The wage level in The Netherlands is, by a large part, determined in collective labour agreements. However, the result of the processes of job destruction, job creation and job-to-job mobility is that workers move from less productive to more productive jobs. The empirical analysis shows that the resulting productivity gains are reflected in the wage drift, i.e. wage increases which are not part of the collective agreements. Yet, the size of the effects appears to be rather modest.

Suggested Citation

  • Frank A. G. Den Butter & Florian Eppink, 2003. "The influence of labour flows on wage drift: an empirical analysis for The Netherlands," Applied Economics Letters, Taylor & Francis Journals, vol. 10(3), pages 139-142.
    • Handle: RePEc:taf:apeclt:v:10:y:2003:i:3:p:139-142
    DOI: 10.1080/1350485022000041069
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    References listed on IDEAS

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    1. Lourens Broersma & Frank A. G. Den Butter, 2001. "Labour Flows as Determinants of the Wage–Price Spiral: An Empirical Analysis for The Netherlands," LABOUR, CEIS, vol. 15(2), pages 279-294, June.
    2. Steinar Holden, 1998. "Wage Drift and the Relevance of Centralised Wage Setting," Scandinavian Journal of Economics, Wiley Blackwell, vol. 100(4), pages 711-731, December.
    3. Holden, Steinar, 1988. " Local and Central Wage Bargaining," Scandinavian Journal of Economics, Wiley Blackwell, vol. 90(1), pages 93-99.
    4. Broersma, Lourens & den Butter, Frank A. G. & Kock, Udo, 2000. "A national accounting system for worker flows," Economics Letters, Elsevier, vol. 67(3), pages 331-336, June.
    5. Lourens Broersma & Frank A. G. Den Butter, 2002. "An explorative empirical analysis of the influence of labour flows on wage formation," Applied Economics, Taylor & Francis Journals, vol. 34(13), pages 1583-1592.
    6. Holden, Steinar, 1998. " Wage Drift and the Relevance of Centralised Wage Setting," Scandinavian Journal of Economics, Wiley Blackwell, vol. 100(4), pages 711-731, December.
    7. Muysken, Joan & van Veen, Tom, 1996. " Efficiency Wages and Local Wage Bargaining," Scandinavian Journal of Economics, Wiley Blackwell, vol. 98(1), pages 119-127, March.
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    Cited by:

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    3. Bastos, Paulo & Monteiro, Natália P. & Straume, Odd Rune, 2009. "Firm heterogeneity and wages in unionised labour markets: Theory and evidence," Labour Economics, Elsevier, vol. 16(4), pages 440-450, August.

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