Employment by level of education and production factor substitutability

Hebbink, Gerbert

doi:10.1007/bf01423572

Cited by 9 publications

(2 citation statements)

References 8 publications

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“…Draper and Manders (1997) have shown that labour-saving technological change explains most of the change in the wage structure in the period 1969-93. Less recent studies, which have reached similar conclusions, have been performed by Broer and Jansen (1989) and Hebbink (1991). Broer and Jansen divided the labour force into three categories and focused on employment, education and productivity.…”

Section: Wages In the Netherlandsmentioning

confidence: 70%

The Structure of Wages in the Netherlands, 1986–98

Weel¹

2003

Labour

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For many OECD countries an increase in wage inequality has been documented since the early 1980s. This is often attributed to a general rise in the demand for skilled workers resulting from recent technological change. Using the Organization for Strategic Labour Market Research (OSA) Labour Supply data, this paper studies the wage structure in the Netherlands over the period 1986-98 and demonstrates that wage inequality did not increase to any significant extent in the Netherlands. Using the accounting framework proposed by Juhn et al. (Journal of Political Economy 101: 410-442, 1993), it is shown that the relatively stable wage structure until at least the late 1990s can be attributed mainly to returns to observable components, such as education and experience, while residual wage inequality is found to be of minor importance in explaining the Dutch wage structure. These estimates suggest that the demand for skill in the Netherlands is likely not to have been rising to the extent it did in many other countries over this period.LABOUR 17 (3) 361-382 (2003) JEL J31

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Section: Wages In the Netherlandsmentioning

confidence: 70%

The Structure of Wages in the Netherlands, 1986–98

Weel¹

2003

Labour

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“…Some of these parameters are guesstimates and subjected to sensitivity analysis. Empirical estimates for the Dutch elasticity of substitution between raw labour and human capital by Broer and Jansen (1989) and Hebbink (1991) confirm that (in comparison with aggregate labour and capital), raw labour and human capital are poor substitutes. Accordingly, we set the elasticity of substitution between raw labour and human capital at 0.55.…”

Section: Key Parametersmentioning

confidence: 89%

Endogenizing technological progress: The MESEMET Model

et al. 1997

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This paper endogenizes technology and human capital formation in the MESEM model that was developed by van Sinderen (Economic Modelling, 1993, 13, 285-300). Tax allowances for private R&D expenditures and public expenditures on both education and R& D are effective instruments to stimulate economic growth. Simulations with respect to market clearing, the importance of supply-side elements and key parameters (such as the magnitude of spillovers and substitution elasticities) reveal that tax allowances for private R & D are the most robust instrument to increase economic growth through the accumulation of knowledge. Contrary to other studies that find that technology policies typically reduce employment, we find that overall employment rises.

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