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Pay Differentials Between the Private and the Public Sector in the Netherlands

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  • M. Peter Van Der Hoek

    (Erasmus University)

Abstract

This article reviews the results of an investigation into public- and private- Abstract sector pay that was recently carried out in the Netherlands. The methodology is unique because the study includes aspects of compensation other than the paycheck and because it measures compensation both on the job and after disability, unemployment, and retirement. Moreover, pay differentials arising from determinants not connected with the job are reduced by standardization. As a result, "standardized "people in comparable jobs are compared. The study concludes that approximately two-thirds ofgovernment workers earn less than their private-sector counterparts, while this pay gap increases according to job level. However, a trade-off seems to exist between pay on and off the job, because the pay gap in the active period is partly compensated for by higher compensation in case of unemployment of public-sector workers.

Suggested Citation

  • M. Peter Van Der Hoek, 1989. "Pay Differentials Between the Private and the Public Sector in the Netherlands," Public Finance Review, , vol. 17(1), pages 84-95, January.
    • Handle: RePEc:sae:pubfin:v:17:y:1989:i:1:p:84-95
    DOI: 10.1177/109114218901700104
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    References listed on IDEAS

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    1. Smith, Sharon P, 1982. "Prospects for Reforming Federal Pay," American Economic Review, American Economic Association, vol. 72(2), pages 273-277, May.
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    Cited by:

    1. Moundir, Lassassi & Menna, Khaled, 2016. "La Notion De « Femmes Au Foyer » En Algerie, Une Realite Ou Une Representation Nostalgique [The Notion Of “ Homemaker” In Algeria, A Reality Or A Nostalgic Representation]," MPRA Paper 85740, University Library of Munich, Germany.
    2. Christofides, Louis N. & Pashardes, Panos, 2002. "Self/paid-employment, public/private sector selection, and wage differentials," Labour Economics, Elsevier, vol. 9(6), pages 737-762, December.
    3. Menna, Khaled & Lassassi, Moundir, 2016. "المرأة الماكثة في البيت في الجزائر: قدرات منسية؟! [The Housewives In Algeria: Forgotten Capacities?]," MPRA Paper 85421, University Library of Munich, Germany.
    4. van der Hoek, M. Peter, 1994. "The Use Of Labor Market Supplements By Central Government In The Netherlands," MPRA Paper 6110, University Library of Munich, Germany.

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