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Differences in underemployment between the United States and the Netherlands

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Author Info
Dijk, Jouke van (Groningen University)

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Abstract

In this paper the method of cross nation comparison has been applied to analyze wage impacts of labor market institutions. The countries under comparison are the US and the Netherlands. By means of stochastic wage frontier models it has been shown that labor market institutions, in particular, higher unemployment benefits and collective bargaining lead to substantial less underemployment in the Netherlands than in the US. Information channels also play a role, especially in the US, although to a smaller extent.

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File URL: http://irs.ub.rug.nl/ppn/170991903
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Publisher Info
Paper provided by University of Groningen, Research Institute SOM (Systems, Organisations and Management) in its series Research Report with number 98D26.

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Date of creation: 1998
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Handle: RePEc:dgr:rugsom:98d26

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  1. Peter Dawson & Timothy Hinks & Duncan Watson, 2001. "German Wage Underpayment: An Investigation into Labor Market Inefficiency and Discrimination," Vierteljahrshefte zur Wirtschaftsforschung / Quarterly Journal of Economic Research, DIW Berlin, German Institute for Economic Research, vol. 70(1), pages 107-114.
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