Trends in Wage Inequality in the Netherlands

C. Schneck*

*Corresponding author for this work

Research output: Contribution to journalArticleAcademicpeer-review

Abstract

In this paper I analyze changes in the wage distribution in the Netherlands. I use a matched employer-employee dataset that covers the population of employees. Wage inequality increases over the period of 2001–2016. Changes in between-firm wage components are responsible for nearly the entire increase. Increases in the variance of workers’ skills and increases in worker sorting and worker segregation explain the majority of the rise in the variance of wages. These changes are accompanied by a pattern where variation in educational degree and firm average wages become more correlated over time. Finally, it is suggested that labor market institutions in the Netherlands play an important role in mediating overall wage inequality.
Original languageEnglish
Pages (from-to)253-289
Number of pages37
JournalDe Economist
Volume169
Issue number3
Early online date26 Jul 2021
DOIs
Publication statusPublished - Aug 2021

Keywords

  • Wage inequality
  • Pay inequality
  • Between-firm inequality
  • BIASED TECHNOLOGICAL-CHANGE
  • JOB POLARIZATION
  • TECHNICAL CHANGE
  • SKILL
  • DEMAND
  • PRODUCTIVITY
  • EVOLUTION
  • TRADE
  • TASKS
  • RISE

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