Wage Structure and Labor Mobility in the Netherlands 1999-2003

37 Pages Posted: 12 Jul 2007

See all articles by Lex Borghans

Lex Borghans

Maastricht University - Department of Economics; University of Maastricht - Research Centre for Education and the Labour Market (ROA); IZA Institute of Labor Economics

Ben Kriechel

Maastricht University - Research Centre for Education and the Labour Market (ROA); IZA Institute of Labor Economics

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Date Written: June 2007

Abstract

In this paper we document the wage structure and labor mobility in the Netherlands in the period 1999-2003. We explain the importance of wage-setting institutions in the Netherlands and the main actors. The analyses are based on administrative sources allowing for comparisons between and within firms, and in which workers can be followed over time. In the period investigated the Netherlands experienced an increase in wage inequality. Despite the centralized system of wage negotiations in the Netherlands, our findings suggest that market forces were the main determinant of wage growth. Workers with similar wages experienced similar wage increases in firms of different sizes. Wages increases were larger for low-skilled workers in industries with large increases in demand than in other industries. Variation in wage growth was mainly at the individual level. Firm-level wage increases accounted for only 12% of the total variation.

Keywords: wage structure, labor mobility

JEL Classification: J31, J50, J62, J63, M52

Suggested Citation

Borghans, Lex and Kriechel, Ben, Wage Structure and Labor Mobility in the Netherlands 1999-2003 (June 2007). IZA Discussion Paper No. 2865, Available at SSRN: https://ssrn.com/abstract=998487

Lex Borghans (Contact Author)

Maastricht University - Department of Economics ( email )

P.O. Box 616
Maastricht, 6200 MD
Netherlands

University of Maastricht - Research Centre for Education and the Labour Market (ROA) ( email )

P.O. Box 616
Maastricht, MD6200
Netherlands

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Ben Kriechel

Maastricht University - Research Centre for Education and the Labour Market (ROA) ( email )

P.O. Box 616
Maastricht, MD6200
Netherlands

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

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