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The Structure of WagesAn International Comparison$
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Edward P. Lazear and Kathryn L. Shaw

Print publication date: 2009

Print ISBN-13: 9780226470504

Published to Chicago Scholarship Online: February 2013

DOI: 10.7208/chicago/9780226470511.001.0001

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

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

(p.125) 4 Wage Structure and Labor Mobility in the Netherlands, 1999–2003
The Structure of Wages

Lex Borghans

Ben Kriechel

University of Chicago Press

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

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