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The influence of labour flows on wage drift: an empirical analysis for The Netherlands

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  • Frank A. G. Den Butter
  • Florian Eppink

Abstract

The wage level in The Netherlands is, by a large part, determined in collective labour agreements. However, the result of the processes of job destruction, job creation and job-to-job mobility is that workers move from less productive to more productive jobs. The empirical analysis shows that the resulting productivity gains are reflected in the wage drift, i.e. wage increases which are not part of the collective agreements. Yet, the size of the effects appears to be rather modest.

Suggested Citation

  • Frank A. G. Den Butter & Florian Eppink, 2003. "The influence of labour flows on wage drift: an empirical analysis for The Netherlands," Applied Economics Letters, Taylor & Francis Journals, vol. 10(3), pages 139-142.
    • Handle: RePEc:taf:apeclt:v:10:y:2003:i:3:p:139-142
    DOI: 10.1080/1350485022000041069
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    References listed on IDEAS

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    1. repec:bla:scandj:v:100:y:1998:i:4:p:711-31 is not listed on IDEAS
    2. Lourens Broersma & Frank A. G. Den Butter, 2001. "Labour Flows as Determinants of the Wage–Price Spiral: An Empirical Analysis for The Netherlands," LABOUR, CEIS, vol. 15(2), pages 279-294, June.
    3. Steinar Holden, 1998. "Wage Drift and the Relevance of Centralised Wage Setting," Scandinavian Journal of Economics, Wiley Blackwell, vol. 100(4), pages 711-731, December.
    4. repec:bla:scandj:v:90:y:1988:i:1:p:93-99 is not listed on IDEAS
    5. repec:bla:scandj:v:98:y:1996:i:1:p:119-27 is not listed on IDEAS
    6. Broersma, Lourens & den Butter, Frank A. G. & Kock, Udo, 2000. "A national accounting system for worker flows," Economics Letters, Elsevier, vol. 67(3), pages 331-336, June.
    7. Lourens Broersma & Frank A. G. Den Butter, 2002. "An explorative empirical analysis of the influence of labour flows on wage formation," Applied Economics, Taylor & Francis Journals, vol. 34(13), pages 1583-1592.
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    Cited by:

    1. David Card & Ana Rute Cardoso, 2022. "Wage Flexibility under Sectoral Bargaining," Journal of the European Economic Association, European Economic Association, vol. 20(5), pages 2013-2061.
    2. Fredrik Carlsen & Kåre Johansen & Knut RØed, 2006. "Wage Formation, Regional Migration and Local Labour Market Tightness," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 68(4), pages 423-444, August.
    3. Bastos, Paulo & Monteiro, Natália P. & Straume, Odd Rune, 2009. "Firm heterogeneity and wages in unionised labour markets: Theory and evidence," Labour Economics, Elsevier, vol. 16(4), pages 440-450, August.

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