Jules Theeuwes

Search, Benefits and Entitlement

In a simultaneous analysis of unemployment duration and search intensity, the authors estimate a nonstructural search model accounting explicitly for two features of the benefit system: benefit level and time remaining until exhaustion of the entitlement period (residual entitlement). Special attention is paid to the number of search contacts as an indicator for search intensity. To assess the effect of the benefit level and residual entitlement on the number of search contacts, the authors estimate a Poisson model. Their results suggest that benefits work through a reduction of search efforts, whereas residual entitlement is effective mainly through the reservation wage. Copyright 1993 by The London School of Economics and Political Science.

The Emergence of the Working Wife in Holland

The rate of participation in the labor force by married women is lower in the Netherlands than in similar industrialized countries. However, since the end of the Second World War the participation rate increased from almost zero to almost one-fourth in less than 35 years. Using estimation results obtained with a probit model on a 1979 nationwide cross-section, this paper tries to reconstruct the postwar growth in this participation rate. It is found in particular that the increase in the real wage for female workers contributes substantially to the explanation of the observed long-run change. Given the relatively high own-wage elasticity, one would also expect Dutch wives to catch up in the future with the level of participation observed in neighboring countries.

Entry and Innovation in Maturing Markets: Virtual Operators in Mobile Telecommunications

Abstract In the last few years the mobile telecommunications industry has witnessed the entry of a large number of new service providers. Traditionally, mobile users get their mobile services from the service providers owned by vertically integrated mobile network operators (MNOs). The new entrants do not own a network of their own however, because they use the existing mobile infrastructure, i.e. they are ‘mobile virtual network operators’ (MVNOs). By granting these virtual operators access to their networks, MNOs actually facilitate the entry of potential competitors for their own downstream service providers. These new entrants might attract additional users by offering competitive services and create extra value with their well-known brand names and other complementary assets. This study focuses on the mobile market of the Netherlands, where competition is intense and MVNOs proliferate. The aim of this research is to improve our understanding of the entry of virtual operators in general, and specifically by explaining why and how virtual operators enter the mobile market and the impact they have on competition in the mobile market.

Transition intensities in the Dutch labour market 1980–85

Using data from a set of retrospective questions from a Dutch national sample on individual labour market experiences in the period 1980–85, a three-state hazard model is estimated. Transitions are analysed between three labour market states: employment, unemployment and the out-of-the labour force, as well as between jobs (job mobility). Allowance is made for time-varying exogenous variables and for duration dependence. The estimated transition rates allow us to predict individual probabilities of participation in the labour force, of unemployment and employment, and to calculate expected lengths of stay in each of these labour market states as a function of personal characteristics and relevant demand conditions.

Duration of unemployment in the Dutch youth labour market

SummaryThis paper is concerned with the specification and estimation of a one-state proportional hazard model to explain the duration of unemployment in the Dutch youth labour market. Special attention is given explaining the unequal distribution of unemployment experiences among young labour force participants. The model is estimated using data from a 1984 national random sample of young people unemployed in May and interviewed in October/November. It is found that the replacement ratio has no significant effect. The predicted youth wage on the other hand is significant. The paper also presents and compares different functional forms for modelling duration dependence and heterogeneity.

Estimation of Optimal Human Capital Accumulation Parameters for the Netherlands

Abstract Using the theory of optimal investments in human capital in general and Rosens (1975, 1976) version of it in particular we tried to model and explain aggregate life-cycle income-profiles for The Netherlands in 1965, 1972 and 1979. The model allowed us to estimate and impute human capital accumulation parameters and paths. Changes in rates of return, depreciation rates, the value of the human capital stock and of lifetime human wealth could be identified and compared for the sample years. It was found that, in terms of some of these parameters, public-sector employees gained compared with private-sector employees and employees with higher vocational training gained ground over university-trained employees.

Participation and hours of work: Two stages in the life-cycle of married women

Abstract A 1979 cross-section of Dutch households is used to estimate an integrated labor force participation and hours of work labor supply model for women. Young women and older women are found to behave differently. Wage and income elasticities are always higher for older than for younger women (in absolute terms), and the relative importance of participation and hours elasticities is reversed as the average woman grows older, thereby implying that younger women tend to be more preoccupied with the participation decision whereas older women are more concerned with the hours decision. Econometrically the paper builds on Heckmans (1974) participation cum-hours model by adapting the estimation method to allow for the fact that hours worked are only observed in intervals. A maximum likelihood model in which we integrate over parts of the hours distribution is used. This technique, though computationally involved, gave satisfying results. We compare the results with estimates of a similar but much simpler probit model to identify the possible biases in the simpler approach.

Post-war unemployment in the Netherlands

As in most European countries, incidence of unemployment in the Netherlands has developed jointly with increased attention for analysis and policies. This interaction is especially strong in the Netherlands due to the special role of institutions such as the Central Planning Bureau (CPB) and the Social-Economic Council (SER). The former has a role in policy preparation and formulation that is unmatched in any other country. The latter is a prime example of a corporatist institution whereby representatives of unions and employers’ organizations advise the government on all matters related to social and economic policy. Here we want to tell the story of unemployment and unemployment policies in the Netherlands since the second world war, covering almost the complete second half of the twentieth century. The story has several storylines. One line is the chronological line. We are basically going to walk through history by decade. At the sameti.Fe, woven into it and through it are other plot lines such as the rise and fall of-the Dutch welfare state; the ever present wage restraint policies; the ever changing views on labour market policies and the ever central role of the Central Planning Bureau’s economic analyses in policy discussions. In section 1 we present data on unemployment, drawing a landscape by numbers. In the following sections (2-6) we present the chronological history

Beleidseconomie: Een rationele onderbouwing van overheidsingrijpen

De aanleg van de Noord-Zuidlijn in Amsterdam was een foute beslissing. De beslissing over de aanbesteding van thuiszorg had volgens de Tweede Kamer niet de gewenste resultaten. Twee voorbeelden uit een lange reeks beleidsbeslissingen die beter hadden gekund. Het is onmogelijk om alle verkeerde beslissingen uit te bannen, maar het is wel mogelijk om beslissingen beter voor te bereiden. Beleidseconomie helpt bij het nemen van betere beslissingen, omdat ze de vraag beantwoordt wanneer ingrijpen nodig is om een publiek belang te borgen. Ook brengt ze de maatschappelijke kosten en baten in kaart, zodat alleen gekozen wordt voor beleid met een positief saldo voor de samenleving. De samenleving moet steeds opnieuw kiezen tussen wat aan de markt kan worden overgelaten en wat de overheid naar zich toe moet halen. Beleidseconomie is als een landmeter die de grens trekt tussen markt en overheid.

Protection against unfair contracts: an economic analysis of European regulation

After considering the possible outcomes that may result from the interaction between potential contract parties, this paper discusses potential causes of inefficiency and investigates how the law affects conditions that would give rise to inefficiency. The analysis is focussed on the European regulation of standard form contracts. This regulation implies that ‘unfair terms’ in standard form contracts are unenforceable in Member States of the European Community, and can be interpreted as a measure to curtail the adverse selection problem that originates in the fact that contract parties may use standard form contracts. This paper investigates the welfare implication of this protection against unfair contracts.