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Trends in Wage Inequality in the Netherlands

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  • Colja Schneck

    (Maastricht University)

Abstract

In this paper I analyze changes in the wage distribution in the Netherlands. I use a matched employer-employee dataset that covers the population of employees. Wage inequality increases over the period of 2001–2016. Changes in between-firm wage components are responsible for nearly the entire increase. Increases in the variance of workers’ skills and increases in worker sorting and worker segregation explain the majority of the rise in the variance of wages. These changes are accompanied by a pattern where variation in educational degree and firm average wages become more correlated over time. Finally, it is suggested that labor market institutions in the Netherlands play an important role in mediating overall wage inequality.

Suggested Citation

  • Colja Schneck, 2021. "Trends in Wage Inequality in the Netherlands," De Economist, Springer, vol. 169(3), pages 253-289, August.
  • Handle: RePEc:kap:decono:v:169:y:2021:i:3:d:10.1007_s10645-021-09388-z
    DOI: 10.1007/s10645-021-09388-z
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    1. Sabien Dobbelaere & Grace McCormack & Daniel Prinz & Sándor Sóvágó, 2022. "Firm Consolidation and Labor Market Outcomes," Tinbergen Institute Discussion Papers 22-085/V, Tinbergen Institute.

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    More about this item

    Keywords

    Wage inequality; Pay inequality; Between-firm inequality;
    All these keywords.

    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J40 - Labor and Demographic Economics - - Particular Labor Markets - - - General

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