IDEAS home Printed from https://ideas.repec.org/p/dnb/dnbwpp/779.html
   My bibliography  Save this paper

The price of flexible jobs: Wage differentials between permanent and flexible jobs in The Netherlands

Author

Listed:
  • Cindy Biesenbeek
  • Maikel Volkerink

Abstract

Employees with a flexible contract, i.e., those with either a temporary contract, temporary agency workers, or those on a contract with flexible working hours, face more job and income insecurity than employees with a permanent contract. In competitive labor markets, they should be compensated for this uncertainty. In most countries, however, wages of flexible jobs are lower than those of permanent jobs. We find that this is also the case for The Netherlands between 2006 and 2019, in particular for men and higher educated employees. A critique on wage comparisons is that sample selection may lead to biased results. We use two methods to control for sample selection - Regression Adjustment and Propensity Score Matching - and find wage differentials close to our baseline estimates.

Suggested Citation

  • Cindy Biesenbeek & Maikel Volkerink, 2023. "The price of flexible jobs: Wage differentials between permanent and flexible jobs in The Netherlands," Working Papers 779, DNB.
    • Handle: RePEc:dnb:dnbwpp:779
    as

    Download full text from publisher

    File URL: https://www.dnb.nl/media/a5vlpx5o/working_paper_no-779.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. António Dias da Silva & Alessandro Turrini, 2015. "Precarious and less well-paid? Wage differences between permanent and fixed-term contracts across the EU countries," European Economy - Economic Papers 2008 - 2015 544, Directorate General Economic and Financial Affairs (DG ECFIN), European Commission.
    2. Poulissen, Davey & de Grip, Andries & Fouarge, Didier & Künn, Annemarie, 2021. "Employers’ willingness to invest in the training of temporary workers: a discrete choice experiment," ROA Research Memorandum 003, Maastricht University, Research Centre for Education and the Labour Market (ROA).
    3. Jonneke Bolhaar & Marloes Graaf-Zijl & Bas Scheer, 2018. "Three Perspectives on the Dutch Growth of Flexible Employment," De Economist, Springer, vol. 166(4), pages 403-432, December.
    4. Silva, António Dias da & Turrini, Alessandro, 2015. "Precarious and Less Well Paid? Wage Differences between Permanent and Fixed-term Contracts across the EU," IZA Policy Papers 105, Institute of Labor Economics (IZA).
    5. Lawrence M. Kahn, 2016. "The Structure of the Permanent Job Wage Premium: Evidence from Europe," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 55(1), pages 149-178, January.
    6. Mattia Filomena & Matteo Picchio, 2022. "Are temporary jobs stepping stones or dead ends? A systematic review of the literature," International Journal of Manpower, Emerald Group Publishing Limited, vol. 43(9), pages 60-74, August.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Iris Klinker & Bas Weel, 2024. "Wages and Employment in the Netherlands, 2017–2023," De Economist, Springer, vol. 172(3), pages 233-256, September.
    2. Iris Klinker & Bas ter Weel, 2024. "Wages and employment in the Netherlands, 2017-2023," Tinbergen Institute Discussion Papers 24-042/V, Tinbergen Institute.
    3. Klinker, Iris & ter Weel, Bas, 2024. "Wages and Employment in the Netherlands, 2017-2023," IZA Discussion Papers 17049, Institute of Labor Economics (IZA).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Diego Daruich & Sabrina Di Addario & Raffaele Saggio, 2023. "The Effects of Partial Employment Protection Reforms: Evidence from Italy," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 90(6), pages 2880-2942.
    2. Ramskogler, Paul, 2021. "Labour market hierarchies and the macro-economy – Do labour market dualities affect wage growth in Europe?," Structural Change and Economic Dynamics, Elsevier, vol. 56(C), pages 154-165.
    3. Klinker, Iris & ter Weel, Bas, 2024. "Wages and Employment in the Netherlands, 2017-2023," IZA Discussion Papers 17049, Institute of Labor Economics (IZA).
    4. Paola Naddeo, 2015. "The Wage Effects Of Fixed-Term Contracts," RIEDS - Rivista Italiana di Economia, Demografia e Statistica - The Italian Journal of Economic, Demographic and Statistical Studies, SIEDS Societa' Italiana di Economia Demografia e Statistica, vol. 69(4), pages 63-72, October-D.
    5. Cabo, Francisco & Martín-Román, Ángel L., 2017. "Dynamic collective bargaining. Frictional effects under open-shop industrial relations," MPRA Paper 77562, University Library of Munich, Germany.
    6. Garcia-Louzao, Jose & Hospido, Laura & Ruggieri, Alessandro, 2023. "Dual returns to experience," Labour Economics, Elsevier, vol. 80(C).
    7. Perugini, Cristiano & Pompei, Fabrizio, 2017. "Temporary Jobs, Institutions, and Wage Inequality within Education Groups in Central-Eastern Europe," World Development, Elsevier, vol. 92(C), pages 40-59.
    8. Clémence Berson, 2018. "Fixed-Term Contracts and Labor Market Duality in France," De Economist, Springer, vol. 166(4), pages 455-476, December.
    9. Stefan Jestl & Sandra M. Leitner & Sebastian Leitner, 2022. "The relative impact of different forces of globalization on wage inequality: A fresh look at the EU experience," Review of International Economics, Wiley Blackwell, vol. 30(4), pages 1003-1037, September.
    10. Cindy Biesenbeek & Maikel Volkerink, 2023. "The Price of Flexible Jobs: Wage Differentials between Permanent and Flexible Jobs in the Netherlands," De Economist, Springer, vol. 171(4), pages 367-401, December.
    11. Kosmas, Petros & Theocharous, Antonis & Ioakimoglou, Elias & Vatikiotis, Leonidas & Giannoulis, Petros & Panagopoulou, Maria & Lamprianou, Lamprianos & Andreev, Hristo & Vatikioti, Aggeliki, 2022. "Mapping and measuring the phenomenon of precariousness in Cyprus: challenges and implications," LSE Research Online Documents on Economics 117571, London School of Economics and Political Science, LSE Library.
    12. José M Arranz & Enrique Fernández-Macías & Carlos García-Serrano, 2021. "Wage differentials and segmentation: The impact of institutions and changing economic conditions," European Journal of Industrial Relations, , vol. 27(2), pages 203-227, June.
    13. Lehner, Lukas & Ramskogler, Paul & Riedl, Aleksandra, 2022. "Begging thy coworker – Labor market dualization and the slow-down of wage growth in Europe," INET Oxford Working Papers 2022-04, Institute for New Economic Thinking at the Oxford Martin School, University of Oxford.
    14. Gerhard Fenz & Christian Ragacs & Alfred Stiglbauer, 2019. "Aggregate wage developments in Austria since the introduction of the euro," Monetary Policy & the Economy, Oesterreichische Nationalbank (Austrian Central Bank), issue Q-1-Q2/19, pages 41-56.
    15. Giuseppe Lucio Gaeta & Giuseppe Lubrano Lavadera & Francesco Pastore, 2022. "The Effect of Job–Education Vertical Mismatch on Wages Among Recent PhD Graduates: Evidence From an Instrumental Variable Analysis," Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, Springer;Società Italiana degli Economisti (Italian Economic Association), vol. 8(1), pages 197-225, March.
    16. Rahul Menon, 2019. "Short-term contracts and their effect on wages in Indian regular wage employment," The Economic and Labour Relations Review, , vol. 30(1), pages 142-164, March.
    17. Francisco Cabo & Angel Martín-Román, 2019. "Dynamic collective bargaining and labor adjustment costs," Journal of Economics, Springer, vol. 126(2), pages 103-133, March.
    18. Christos Koutsampelas, 2018. "Non-standard employment in Cyprus: Trends and policy responses," Cyprus Economic Policy Review, University of Cyprus, Economics Research Centre, vol. 12(1), pages 41-58, June.
    19. Alessia Matano, 2022. "Spatial externalities in big cities and duality of the labour market," Journal of Regional Science, Wiley Blackwell, vol. 62(2), pages 471-498, March.
    20. Yang, Guanyi, 2017. "General Equilibrium Evaluation of Temporary Employment," MPRA Paper 80047, University Library of Munich, Germany.

    More about this item

    Keywords

    Wage Gap; Flexible Employment; Earnings; Hourly wages; Wage differential; Non- standard work;
    All these keywords.

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:dnb:dnbwpp:779. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: DNB (email available below). General contact details of provider: https://edirc.repec.org/data/dnbgvnl.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.