Wage Structure and Labor Mobility in the Netherlands, 1999–2003

Lex Borghans and Ben Kriechel

in The Structure of Wages

Published by University of Chicago Press

Published in print February 2009 | ISBN: 9780226470504
Published online February 2013 | e-ISBN: 9780226470511 | DOI:
Wage Structure and Labor Mobility in the Netherlands, 1999–2003

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This chapter explains the institutional setting and the main actors of wage determination in the Netherlands. It also examines the impact of the centralized bargaining system on the Dutch wage structure, and the extent to which individual factors, developments at the firm level, and market developments determine wages. From 1999 to 2003, the Netherlands clearly experienced an increase in wage inequality, especially among men. The data suggest that wage formation in the Netherlands was determined mainly by the development of the scarcity of human capital on the one hand, and by individual career developments on the other. There was a general tendency for an increase in wage inequality as wages for workers with high incomes grew more than wages for low-wage workers. The structure of wages in the Netherlands is largely related to changes in the scarcity and value of human capital.

Keywords: Dutch wage structure; Netherlands; bargaining system; firm; market; wage inequality; human capital

Chapter.  8352 words.  Illustrated.

Subjects: International Economics

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