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Wage Structure and Labor Mobility in the Netherlands 1999-2003

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Author Info
Lex Borghans
Ben Kriechel

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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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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 13210.

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Date of creation: Jul 2007
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Handle: RePEc:nbr:nberwo:13210

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Find related papers by JEL classification:
J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
J50 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - General
J62 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Job, Occupational and Intergenerational Mobility; Promotion
J63 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Turnover; Vacancies; Layoffs
M52 - Business Administration and Business Economics; Marketing; Accounting - - Personnel Economics - - - Compensation and Compensation Methods and Their Effects

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Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. 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. [Downloadable!] (restricted)
  2. 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. [Downloadable!]
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  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. [Downloadable!] (restricted)
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  4. 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. [Downloadable!] (restricted)
  5. 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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