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


Patrick A. Puhani


Leibniz University Hannover; University of St. Gallen - Swiss Institute for International Economics and Applied Economic Research; Institute for the Study of Labor (IZA); Université Paris II - Panthéon-Assas

November 2003

University of St. Gallen Economics Discussion Paper No. 2004-04

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.

Number of Pages in PDF File: 35

Keywords: Earnings, flexibility, labour

JEL Classification: J21, J31, J64

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Date posted: April 8, 2004  

Suggested Citation

Puhani, Patrick A., What Happened to Wage and Non-Employment Structures During the 'Dutch Employment Miracle'? (November 2003). University of St. Gallen Economics Discussion Paper No. 2004-04. Available at SSRN: http://ssrn.com/abstract=526063 or http://dx.doi.org/10.2139/ssrn.526063

Contact Information

Patrick A. Puhani (Contact Author)
Leibniz University Hannover ( email )
Institut für Arbeitsökonomik
Koenigsworther Platz 1
30167 Hannover, DE 30167
Germany
University of Saint Gallen - Swiss Institute for International Economics and Applied Economic Research ( email )
Dufourstr. 48
St. Gallen, 9000
Switzerland
+41 71 224 2341 (Phone)
+41 71 224 2298 (Fax)
Institute for the Study of Labor (IZA)
P.O. Box 7240
Bonn, D-53072
Germany
Université Paris II - Panthéon-Assas
12 place du Pantheon
Paris cedex 06, 75231
France
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