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What Happened to Wage and Non-Employment Structures During the ‘Dutch Employment Miracle’?

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  • Patrick A. Puhani

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Abstract

The Netherlands have experienced an employment miracle since the 1980s. This note investigates what happened to the wage, unemployment, and non-employment structures between 1988 and 1998, when both unemployment and non-employment rates decreased markedly. Surprisingly, I find no significant changes in the wage structures, although there clearly was wage moderation on average. Although there have also been virtually no changes in the unemployment structure, the relative non-employment of older workers (due to incentives to retire) and men increased. Whereas supply effects and early retirement schemes can explain the constancy of the returns to age, the lack of an increase in the returns to education remains a puzzle in the face of well-documented skill-biased technological change in other major industrialised countries.

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File URL: http://www1.vwa.unisg.ch/RePEc/usg/dp2004/dp04_puhani_ganz.pdf
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Paper provided by Department of Economics, University of St. Gallen in its series University of St. Gallen Department of Economics working paper series 2004 with number 2004-04.

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Length: 22 pages
Date of creation: Apr 2004
Date of revision:
Handle: RePEc:usg:dp2004:2004-04

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Keywords: earnings; flexibility; labour;

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  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.
  2. Daron Acemoglu, 2000. "Technical Change, Inequality, and the Labor Market," NBER Working Papers 7800, National Bureau of Economic Research, Inc.
  3. Patrick A. Puhani, 2003. "Relative Demand Shocks and Relative Wage Rigidities During the Rise and Fall of Swiss Unemployment," Kyklos, Wiley Blackwell, vol. 56(4), pages 541-562, November.
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