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The Use Of Labor Market Supplements By Central Government In The Netherlands


  • van der Hoek, M. Peter


This paper reviews an investigation into the application of retention bonuses and labor market allowances in the central government sector in the Netherlands. On average, the supplements amount to approximately one (gross) monthly salary. They mainly accrue to males, who are highly educated, well paid, between 35 and 45 years old and who belong to the four centrally designated groups (accountants, automation experts, financial economists, and tax experts). However, there is some evidence that the efficacy of the supplements is limited. Only a small fraction of those who stayed in their job state that they would have moved if they were not awarded an addition. Moreover, people who move to another job appear to mention the content of the job as their primary motive.

Suggested Citation

  • van der Hoek, M. Peter, 1994. "The Use Of Labor Market Supplements By Central Government In The Netherlands," MPRA Paper 6110, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:6110

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    References listed on IDEAS

    1. M. Peter Van Der Hoek, 1989. "Pay Differentials Between the Private and the Public Sector in the Netherlands," Public Finance Review, , vol. 17(1), pages 84-95, January.
    2. Howard Oxley & Maria Maher & John P. Martin & Giuseppe Nicoletti & P. Alonso-Gamo, 1991. "The Public Sector: Issues for the 1990s," OECD Economics Department Working Papers 90, OECD Publishing.
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    More about this item


    Retention bonuses; labor market supplements; public sector pay;

    JEL classification:

    • J45 - Labor and Demographic Economics - - Particular Labor Markets - - - Public Sector Labor Markets
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • H83 - Public Economics - - Miscellaneous Issues - - - Public Administration


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