Trends in Wage Inequality in the Netherlands

Colja Schneck ()
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Colja Schneck: Maastricht University

De Economist, 2021, vol. 169, issue 3, No 1, 253-289

Abstract: 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.

Keywords: Wage inequality; Pay inequality; Between-firm inequality (search for similar items in EconPapers)
JEL-codes: J21 J31 J40 (search for similar items in EconPapers)
Date: 2021
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Citations: View citations in EconPapers (9)

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DOI: 10.1007/s10645-021-09388-z

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