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Differences in underemployment between the United States and the Netherlands

  • Dijk, Jouke van

    (Groningen University)

In this paper the method of cross nation comparison has been applied to analyze wage impacts of labor market institutions. The countries under comparison are the US and the Netherlands. By means of stochastic wage frontier models it has been shown that labor market institutions, in particular, higher unemployment benefits and collective bargaining lead to substantial less underemployment in the Netherlands than in the US. Information channels also play a role, especially in the US, although to a smaller extent.

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File URL: http://irs.ub.rug.nl/ppn/170991903
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Paper provided by University of Groningen, Research Institute SOM (Systems, Organisations and Management) in its series Research Report with number 98D26.

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Date of creation: 1998
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Handle: RePEc:dgr:rugsom:98d26
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  1. Hofler, Richard A & Murphy, Kevin J, 1992. "Underpaid and Overworked: Measuring the Effect of Imperfect Information on Wages," Economic Inquiry, Western Economic Association International, vol. 30(3), pages 511-29, July.
  2. Kiefer, Nicholas M & Neumann, George R, 1979. "An Empirical Job-Search Model, with a Test of the Constant Reservation-Wage Hypothesis," Journal of Political Economy, University of Chicago Press, vol. 87(1), pages 89-107, February.
  3. Jondrow, James & Knox Lovell, C. A. & Materov, Ivan S. & Schmidt, Peter, 1982. "On the estimation of technical inefficiency in the stochastic frontier production function model," Journal of Econometrics, Elsevier, vol. 19(2-3), pages 233-238, August.
  4. Lippman, Steven A & McCall, John J, 1976. "The Economics of Job Search: A Survey," Economic Inquiry, Western Economic Association International, vol. 14(3), pages 347-68, September.
  5. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Publishing House "SINERGIA PRESS", vol. 31(3), pages 129-137.
  6. Aigner, Dennis & Lovell, C. A. Knox & Schmidt, Peter, 1977. "Formulation and estimation of stochastic frontier production function models," Journal of Econometrics, Elsevier, vol. 6(1), pages 21-37, July.
  7. Herzog, Henry W, Jr & Hofler, Richard A & Schlottmann, Alan M, 1985. "Life on the Frontier: Migrant Information, Earnings and Past Mobility," The Review of Economics and Statistics, MIT Press, vol. 67(3), pages 373-82, August.
  8. Schmidt, Peter & Knox Lovell, C. A., 1979. "Estimating technical and allocative inefficiency relative to stochastic production and cost frontiers," Journal of Econometrics, Elsevier, vol. 9(3), pages 343-366, February.
  9. Hofler, Richard A. & Polachek, Solomon W., 1985. "A new approach for measuring wage ignorance in the labor market," Journal of Economics and Business, Elsevier, vol. 37(3), pages 267-276, August.
  10. Alan M. Schlottmann & Henry W. Herzog Jr., 1984. "Career and Geographic Mobility Interactions: Implications for the Age Selectivity of Migration," Journal of Human Resources, University of Wisconsin Press, vol. 19(1), pages 72-86.
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