Working Paper: NBER ID: w13210
Authors: Lex Borghans; Ben Kriechel
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: No keywords provided
JEL Codes: J31; J50; J62; J63; M52
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| market demand (R22) | wage growth (J31) |
| wage growth for low-skilled workers in high demand industries (J39) | wage growth for low-skilled workers in other sectors (J39) |
| individual-level variations (D91) | wage growth differences (J31) |
| firm-level factors (L20) | wage growth differences (J31) |
| market conditions (P42) | wage determination (J31) |