Wage inequality in the Netherlands: Evidence, trends and explanations
Using detailed micro data on the entire wage distribution in the Netherlands, this paper examines trends in Dutch (real pre-tax) wage inequality between 2000 and 2008. For many years, the Netherlands has been considered an exception to the general trend of growing wage inequality that most OECD countries have experienced since the 1980s. This OECD trend is generally explained by increasing relative demand for skilled labour due to skill biased technological progress and – to a lesser extent – by globalization. Using detailed micro data on the entire wage distribution in the Netherlands, this paper examines trends in Dutch (real pre-tax) wage inequality between 2000 and 2008. We show that the aggregate flatness of the distribution hides dynamics between different groups and regions. We find that inequality, after correcting for observed worker characteristics, decreased somewhat at the lower half of the wage distribution, while increasing slightly at most of the upper half (both before and after correcting for differences in human capital). Residual wage inequality is high and increasing in most larger cities, which is in line with recent evidence on the increasing importance of agglomeration externalities.
|Date of creation:||Jul 2011|
|Date of revision:|
|Contact details of provider:|| Postal: Postbus 80510, 2508 GM Den Haag|
Phone: (070) 338 33 80
Fax: (070) 338 33 50
Web page: http://www.cpb.nl/
More information through EDIRC
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.:
- Lawrence F. Katz & Kevin M. Murphy, 1991.
"Changes in Relative Wages, 1963-1987: Supply and Demand Factors,"
NBER Working Papers
3927, National Bureau of Economic Research, Inc.
- Lawrence F. Katz & Kevin M. Murphy, 1992. "Changes in Relative Wages, 1963–1987: Supply and Demand Factors," The Quarterly Journal of Economics, Oxford University Press, vol. 107(1), pages 35-78.
- Katz, L.F. & Murphy, K.M., 1991. "Changes in Relative Wages, 1963-1987: Supply and Demand Factors," Harvard Institute of Economic Research Working Papers 1580, Harvard - Institute of Economic Research.
- Juhn, Chinhui & Murphy, Kevin M & Pierce, Brooks, 1993. "Wage Inequality and the Rise in Returns to Skill," Journal of Political Economy, University of Chicago Press, vol. 101(3), pages 410-42, June.
- Euwals, Rob & Knoef, Marike & van Vuuren, Daniel, 2007.
"The Trend in Female Labour Force Participation: What Can Be Expected for the Future?,"
IZA Discussion Papers
3225, Institute for the Study of Labor (IZA).
- Rob Euwals & Marike Knoef & Daniel Vuuren, 2011. "The trend in female labour force participation: what can be expected for the future?," Empirical Economics, Springer, vol. 40(3), pages 729-753, May.
- Rob Euwals & Marike Knoef & Daniel van Vuuren, 2007. "The trend in female labour force participation; what can be expected for the future?," CPB Discussion Paper 93, CPB Netherlands Bureau for Economic Policy Analysis.
- Wim Suyker & Henri de Groot, 2006. "China and the Dutch economy," CPB Document 127, CPB Netherlands Bureau for Economic Policy Analysis.
- Stefan P.T. Groot & Henri L.F. Groot & Martijn J. Smit, 2014.
"Regional Wage Differences In The Netherlands: Micro Evidence On Agglomeration Externalities,"
Journal of Regional Science,
Wiley Blackwell, vol. 54(3), pages 503-523, 06.
- Stefan P.T. Groot & Henri L.F. de Groot & Martijn Smit, 2011. "Regional Wage Differences in the Netherlands: Micro-Evidence on Agglomeration Externalities," Tinbergen Institute Discussion Papers 11-050/3, Tinbergen Institute.
- Stefan Groot & Henri de Groot & Martijn Smit, 2011. "Regional wage differences in the Netherlands: Micro-evidence on agglomeration externalities," CPB Discussion Paper 184, CPB Netherlands Bureau for Economic Policy Analysis.
- Anthony B. Atkinson & Wiemer Salverda, 2005. "Top Incomes In The Netherlands And The United Kingdom Over The 20th Century," Journal of the European Economic Association, MIT Press, vol. 3(4), pages 883-913, 06.
- Jacob A. Mincer, 1974. "Introduction to "Schooling, Experience, and Earnings"," NBER Chapters, in: Schooling, Experience, and Earnings, pages 1-4 National Bureau of Economic Research, Inc.
- David H. Autor & Lawrence F. Katz & Melissa S. Kearney, 2006.
"The Polarization of the U.S. Labor Market,"
NBER Working Papers
11986, National Bureau of Economic Research, Inc.
- Richard Nahuis & Henri de Groot, 2003.
"Rising skill premia; you ain't seen nothing yet?,"
CPB Discussion Paper
20, CPB Netherlands Bureau for Economic Policy Analysis.
- Bourguignon, Francois, 1979. "Decomposable Income Inequality Measures," Econometrica, Econometric Society, vol. 47(4), pages 901-20, July.
- Bas ter Weel, 2003. "The Structure of Wages in the Netherlands, 1986-98," LABOUR, CEIS, vol. 17(3), pages 361-382, 09.
- Maarten Goos & Alan Manning, 2007.
"Lousy and Lovely Jobs: The Rising Polarization of Work in Britain,"
The Review of Economics and Statistics,
MIT Press, vol. 89(1), pages 118-133, February.
- Maarten Goos & Alan Manning, 2003. "Lousy and lovely jobs: the rising polarization of work in Britain," LSE Research Online Documents on Economics 20002, London School of Economics and Political Science, LSE Library.
- Maarten Goos & Alan Manning, 2003. "Lousy and Lovely Jobs: the Rising Polarization of Work in Britain," CEP Discussion Papers dp0604, Centre for Economic Performance, LSE.
- Steve Gibbons & Henry G. Overman & Panu Pelkonen, 2010.
"Wage Disparities in Britain: People or Place?,"
SERC Discussion Papers
0060, Spatial Economics Research Centre, LSE.
- Fishlow, Albert, 1972. "Brazilian Size Distribution of Income," American Economic Review, American Economic Association, vol. 62(2), pages 391-402, May.
- Theil, Henri, 1979. "The measurement of inequality by components of income," Economics Letters, Elsevier, vol. 2(2), pages 197-199.
- Shorrocks, A F, 1980. "The Class of Additively Decomposable Inequality Measures," Econometrica, Econometric Society, vol. 48(3), pages 613-25, April.
- Jean-Marc Burniaux & Flavio Padrini & Nicola Brandt, 2006. "Labour Market Performance, Income Inequality and Poverty in OECD countries," OECD Economics Department Working Papers 500, OECD Publishing.
- David H. Autor & Lawrence F. Katz & Melissa S. Kearney, 2008. "Trends in U.S. Wage Inequality: Revising the Revisionists," The Review of Economics and Statistics, MIT Press, vol. 90(2), pages 300-323, May.
When requesting a correction, please mention this item's handle: RePEc:cpb:discus:186. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ()
If references are entirely missing, you can add them using this form.