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

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

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  1. 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

  2. Outline • EU Enlargement • Comparing the Labour Markets • Competitiveness • Outsourcing/ Offshoring • Disappearing Employment: The Netherlands

  3. Outline • EU Enlargement • Comparing the Labour Markets • Competitiveness • Outsourcing/ Offshoring • Disappearing Employment: The Netherlands

  4. 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

  5. Fear for the East Freedom of Movement • Inflow of workers • “Taking our jobs” • Abusing the social system • Exodus • Cheap labour • Outsourcing/ Offshoring  Countervailing Measures

  6. Outline • EU Enlargement • Comparing the Labour Markets • Competitiveness • Outsourcing/ Offshoring • Disappearing Employment: The Netherlands

  7. Gross monthly minimum wage

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

  9. Wages and productivity

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

  11. Outline • EU Enlargement • Comparing the Labour Markets • Competitiveness • Outsourcing/ Offshoring • Disappearing Employment: The Netherlands

  12. Competitiveness • Lisbon Agenda • Benchmarking • World Competitiveness Yearbook (IMD) • Global Competitiveness Report (WEF) • Economic Freedom Report (Fraser)

  13. Labour Market Flexibility

  14. Growth Competitiveness Index

  15. Outline • EU Enlargement • Comparing the Labour Markets • Competitiveness • Outsourcing/ Offshoring • Disappearing Employment: The Netherlands

  16. Outsourcing/ Off-shoring • White Collar jobs • Following the Market • Critical Mass

  17. Dutch Investments abroad

  18. Outline • EU Enlargement • Comparing the Labour Markets • Competitiveness • Outsourcing/ Offshoring • Disappearing Employment: The Netherlands

  19. Disappearing Employment Considerations when looking for what is gone: • Obsolete • Technology • Trade • Factor Content Analysis • Price-effects studies

  20. Changes in employment in the Netherlands by sector 1987 – 2003 • Increases in Financial/ Business Services & Trade • Decreases in Utilities, Extraction & Industry

  21. Closing Thoughts • Differences are not confined to wages

  22. Thank you for your attention Maarten Biermans & Marko van Leeuwen SEO Amsterdam Economics University of Amsterdam maartenb@seo.uva.nl

  23. Labour Market Institutions

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