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Stichting voor Economisch Onderzoek Universiteit van Amsterdam The Comparative Competitiveness of European Labour markets: Disappearing Employment in the Netherlands Maarten Biermans Marko van Leeuwen

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Stichting voor Economisch Onderzoek Universiteit van Amsterdam

The Comparative Competitiveness of European Labour markets: Disappearing Employment in the Netherlands

Maarten Biermans

Marko van Leeuwen

Industrial Relations in Europe Conference: Governance issues in shifting industrial and employment relationsUtrecht, 26-28 August 2004


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Outline

  • EU Enlargement

  • Comparing the Labour Markets

  • Competitiveness

  • Outsourcing/ Offshoring

  • Disappearing Employment: The Netherlands


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Outline

  • EU Enlargement

  • Comparing the Labour Markets

  • Competitiveness

  • Outsourcing/ Offshoring

  • Disappearing Employment: The Netherlands


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EU Enlargement

EU15  EU25

  • 10 new members

  • Population of 74.1 mln (19%)

  • 738 574 km2 (23%)

  • GDP of € 444.1 bln (5%)

  • Uncertainties & Qualms


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Fear for the East

Freedom of Movement

  • Inflow of workers

    • “Taking our jobs”

    • Abusing the social system

  • Exodus

    • Cheap labour

    • Outsourcing/ Offshoring

       Countervailing Measures


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Outline

  • EU Enlargement

  • Comparing the Labour Markets

  • Competitiveness

  • Outsourcing/ Offshoring

  • Disappearing Employment: The Netherlands


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Gross monthly minimum wage


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The relationship between the proportion of employees on minimum wage (%) and the level of minimum wage (PPS)


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Wages and productivity


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Competitive positions: wage share of the business sector (2002)


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Outline

  • EU Enlargement

  • Comparing the Labour Markets

  • Competitiveness

  • Outsourcing/ Offshoring

  • Disappearing Employment: The Netherlands


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Competitiveness

  • Lisbon Agenda

  • Benchmarking

    • World Competitiveness Yearbook (IMD)

    • Global Competitiveness Report (WEF)

    • Economic Freedom Report (Fraser)


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Labour Market Flexibility


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Growth Competitiveness Index


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Outline

  • EU Enlargement

  • Comparing the Labour Markets

  • Competitiveness

  • Outsourcing/ Offshoring

  • Disappearing Employment: The Netherlands


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Outsourcing/ Off-shoring

  • White Collar jobs

  • Following the Market

  • Critical Mass


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Dutch Investments abroad


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Outline

  • EU Enlargement

  • Comparing the Labour Markets

  • Competitiveness

  • Outsourcing/ Offshoring

  • Disappearing Employment: The Netherlands


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Disappearing Employment

Considerations when looking for what is gone:

  • Obsolete

  • Technology

  • Trade

    • Factor Content Analysis

    • Price-effects studies


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Changes in employment in the Netherlands by sector 1987 – 2003

  • Increases in Financial/ Business Services & Trade

  • Decreases in Utilities, Extraction & Industry


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Closing Thoughts

  • Differences are not confined to wages


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Thank you for your attention

Maarten Biermans & Marko van Leeuwen

SEO Amsterdam Economics

University of Amsterdam

maartenb@seo.uva.nl


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Labour Market Institutions


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