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Wage Structure and Labor Mobility in the Netherlands 1999-2003

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  • Borghans Lex
  • Kriechel Ben

    (ROA rm)

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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Bibliographic Info

Paper provided by Maastricht University, Research Centre for Education and the Labour Market (ROA) in its series ROA Research Memorandum with number 004.

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Date of creation: 2007
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Handle: RePEc:unm:umaror:2007004

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Keywords: education; training and the labour market;

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References

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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, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics 0018, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
  2. 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.
  3. Bas ter Weel, 2003. "The Structure of Wages in the Netherlands, 1986-98," LABOUR, CEIS, CEIS, vol. 17(3), pages 361-382, 09.
  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.
  5. Dohmen, Thomas, 2003. "Performance, Seniority and Wages: Formal Salary Systems and Individual Earnings Profiles," IZA Discussion Papers 935, Institute for the Study of Labor (IZA).
  6. 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.
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Cited by:
  1. Avouyi-Dovi, Sanvi & Fougère, Denis & Gautier, Erwan, 2011. "Wage Rigidity, Collective Bargaining and the Minimum Wage: Evidence from French Agreement Data," IZA Discussion Papers 5835, Institute for the Study of Labor (IZA).
  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, Economics Department, Universitat Jaume I, Castellón (Spain) 2014/15, Economics Department, Universitat Jaume I, Castellón (Spain).

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