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Wage Structure and Labor Mobility in The Netherlands, 1999-2003

In: The Structure of Wages: An International Comparison

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  • Lex Borghans
  • Ben Kriechel

Abstract

In this paper we document the wage structure and labor mobility in the Netherlands in the period 1999-2003. We explain the importance of wage-setting institutions in the Netherlands and the main actors. The analyses are based on administrative sources allowing for comparisons between and within firms, and in which workers can be followed over time. In the period investigated the Netherlands experienced an increase in wage inequality. Despite the centralized system of wage negotiations in the Netherlands, our findings suggest that market forces were the main determinant of wage growth. Workers with similar wages experienced similar wage increases in firms of different sizes. Wages increases were larger for low-skilled workers in industries with large increases in demand than in other industries. Variation in wage growth was mainly at the individual level. Firm-level wage increases accounted for only 12 % of the total variation.

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This chapter was published in:

  • Edward P. Lazear & Kathryn L. Shaw, 2009. "The Structure of Wages: An International Comparison," NBER Books, National Bureau of Economic Research, Inc, number laze08-1, May.
    This item is provided by National Bureau of Economic Research, Inc in its series NBER Chapters with number 2369.

    Handle: RePEc:nbr:nberch:2369

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    1. Butter, Frank A.G. den & Mosch, Robert H.J., 2001. "the Dutch miracle: institutions, networks and trust," Serie Research Memoranda 0018, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
    2. Hartog, Joop, 1999. "Wither Dutch Corporatism? Two Decades of Employment Policies and Welfare Reforms," Scottish Journal of Political Economy, Scottish Economic Society, vol. 46(4), pages 458-87, September.
    3. Dohmen, Thomas J., 2004. "Performance, seniority, and wages: formal salary systems and individual earnings profiles," Labour Economics, Elsevier, vol. 11(6), pages 741-763, December.
    4. Bas ter Weel, 2003. "The Structure of Wages in the Netherlands, 1986-98," LABOUR, CEIS, vol. 17(3), pages 361-382, 09.
    5. Dur, Robert A J, 2001. "Wage-Setting Institutions, Unemployment, and Voters' Demand for Redistribution Policy," Scottish Journal of Political Economy, Scottish Economic Society, vol. 48(5), pages 517-31, November.
    6. Broersma, Lourens & Koeman, Jan & Teulings, Coen, 2000. "Labour Supply, the Natural Rate, and the Welfare State in The Netherlands: The Wrong Institutions at the Wrong Point in Time," Oxford Economic Papers, Oxford University Press, vol. 52(1), pages 96-118, January.
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    Cited by:
    1. Avouyi-Dovi, S. & Fougère, D. & Gautier, E., 2010. "Wage rigidity, collective bargaining and the minimum wage: evidence from French agreement data," Working papers 287, Banque de France.
    2. Mariam Camarero & Gaetano D’Adamo & Cecilio Tamarit, 2014. "The role of Institutions in explaining wage determination in the Euro Area: a panel cointegration approach," Working Papers 1407, Department of Applied Economics II, Universidad de Valencia.

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