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Measurement of wages in the Netherlands

This talk provides an overview of the measurement of wages in the Netherlands, including information on earnings and labor costs surveys, the structure of earnings survey, and the index of wages and labor costs. It also covers the use of Statline, the electronic database of Statistics Netherlands, for accessing wage data.

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Measurement of wages in the Netherlands

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  1. Measurement of wages in the Netherlands Herman Slagter hsgr@cbs.nl Statistics Netherlands http://www.cbs.nl/en

  2. Outline of my talk • Statistics Netherlands • Earnings and labour costs surveys - Survey on Employment and Earnings- Structure of Earnings Survey- Labour Costs Survey - Index of wages and labour costs as measured in collective agreements • Statline: the electronic database

  3. Statistics Netherlands • 2600 employees • responsible for official national statistics • semi-independent agency within the Central Government • Central Commission for Statistics decides on the statistical work programme • the Minister for Economic Affairs is politically responsible for legislation and for budget

  4. Earnings and labour costs surveys Division of Social and Spatial Statistics: Statistical Analysis department Basic principles for collecting wage data • establishment surveys and administrative sources • target: diminishing the administrative burden • establishment surveys : wage data have to be available in payroll administrationsmissing data are estimated

  5. Survey on Employment and Earnings (SEE) • all economic sections and size classes • paper questionnaires and electronic data capture • data on number of jobs and payroll totals • individual data of employees regarding monthly and annual wages and hours workedoutput (yearly): hourly, monthly and annual wages by economic activity, size class, sex, age, full-time/part-time, length of service

  6. Wage data in SEE last payment period • wage in cash before deduction of tax and social security contributions excluding:- incidental bonuses- allowances for work-related expenses of which payments for overtime last year • wage before deduction of tax and social security contributions of which incidental bonuses

  7. Hours worked in SEE last payment period • contractual weekly hours (full-timers) • usual weekly hours = contractual weekly hours + extra hours not considered as overtime (part-timers) • actual weekly hours (flexible workers) • paid overtime hours last year • paid leave hours (entitlement) • public holidays

  8. Calculation hourly gross wages SEE • hourly gross wage = gross monthly wage *12 / annual hours • definition of wage is more limited than the ESA-definition (only gross basic wage in cash) • hours are excluding overtime hours, leave hours and hours of public holidays

  9. Structure of Earnings Survey (SES) (1) Secondary statistics: Survey on Employment and Earnings (SEE) + Labour Force Survey (LFS) + Population Register SEE: wage data, but not educational level, occupation and nationality LFS: no wage data, but employees can be distinguished by educational level and occupation Population register: nationality Record matching

  10. Structure of Earnings Survey (SES) (2) National survey: • SEE definitions • irregular frequency European survey: • wages include overtime pay • hours paid include paid overtime, paid leave hours and paid public holidays • four-yearly

  11. Labour Costs Survey (LCS) European Survey • very broad definition of wages (ESA) • hours paid and hours actually worked • annual totals and averages • four-yearly + annual updating core figures Secondary statistics • individual SEE data form the backbone • missing wage and labour costs components and data on hours paid but not worked are imputed

  12. Index of wages and labour costs as measured in collective agreements • a large number of points in the salary schemes of 260 collective wage agreements are followed • wages: contractual basic wages including as well as excluding contractual incidental bonuses • hours: contractual working time minus paid leave hours and paid public holidays • labour costs: + contractual employers’ social contributions • monthly frequency

  13. Statline: the electronic database • http://www.cbs.nl/en • accessible to everyone • all information is free of charge • one can generate own tables or graphs • wage data in main group: labour, income and social security / labour market / employment and earnings • English version of Statline not yet completewage data still missingthis summer wage data will be made available

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