Lourens Broersma

A national accounting system for worker flows

Abstract We present a national accounting system for the construction of a consistent macro data set for worker flows. It is an alternative to micro data sets on gross labour flows derived from panels. The method is applied to construct annual flow data for The Netherlands for 1997.

ICT, Business services and labour productivity growth

This paper focuses on the diffusion of knowledge intensive business services (KIBS) in relation to information and communication technology-based innovations and their effect on productivity growth. Intermediate purchases of KIBS by any other industry determine the extent of KIBS diffusion. This diffusion is seen as part of the broader process of organisational innovations. We find a significant positive relation between this measure of KIBS diffusion and the intensity of information technology (IT). Not only do use of IT and KIBS both contribute positively to labour productivity growth, we also find that the combination of these two inputs adds further to productivity growth for the aggregate economy.

An explorative empirical analysis of the influence of labour flows on wage formation

This study presents an explorative econometric analysis of the influence of labour market flows on wage formation. It applies the vector cointegration and common trends methodology of Johansen (Likelihood-based Inference in Cointegrated Vector Autoregresssive Models, OUP, Oxford, 1995). According to this approach, a combination of the flow of layoffs (flow from employment to unemployment) and the flow of filled vacancies (successful matches) appears to be an adequate alternative to the unemployment rate as indicator of labour market tightness in the wage equation for The Netherlands.

Gender-Specific Spatial Interactions on Dutch Regional Labour Markets and the Gender Employment Gap

Noback I., Broersma L. and van Dijk J. Gender-specific spatial interactions on Dutch regional labour markets and the gender employment gap, Regional Studies. This paper analyses gender-specific employment rates and the gender employment gap in Dutch municipalities for 2002. The novelty of this analysis is that it takes into account the extent to which gender-specific education, income, and unemployment influence the male and female employment rates and gender gap. Men and women often do not compete for the same jobs, but rather it is found that high male unemployment has an indirect, positive significant effect on female employment rates. The gender employment gap narrows with female education and in urban areas and it widens with the care-prone age composition of the municipal population.

Have Dutch Municipalities Become More Efficient In Managing The Costs Of Social Assistance Dependency

Many welfare reforms undertaken in OECD-countries are directed towards enhancing efficiency in the administration and implementation of social security and social benefits. In this perspective the governance reforms in The Netherlands are an example of decentralisation through budgeting of means to municipalities. This brings about a unique twofold experiment in which we compare the efficiency changes in providing social assistance as a result of decentralisation and budgeting and the influence of policy measures at a local level. By using data envelopment analysis we assess the effect of the introduction of the new Work and Social Assistance Act (WSA) in 2004 on cost efficiency. By using a stochastic frontier analysis we assess the impact of municipal policy strategies on cost inefficiencies for the period 2005-2007. We find a clear positive effect of the WSA in 2004 on cost efficiency. Furthermore, we find that in the aftermath, when efficiency slowly dropped after 2005, there is a distinct impact of policy strategies municipalities adopt. Pursuing a strategy of activation raised efficiency significantly, whereas strict control or combinations of strategies led a (weak) fall in efficiency.

Labour Flows as Determinants of the Wage–Price Spiral: An Empirical Analysis for The Netherlands

.This study presents an empirical analysis of the influence of labour market flows on wage and price formation. A system of wage, price and employment equations in the vein of Nickel1 (1987) is estimated including labour flows as explanatory variables. A combination of the flow of layoffs (flow from employment to unemployment) and the flow of filled vacancies (successful matches) appears to be an adequate alternative to the unemployment rate as indicator of labour market tightness in the wage equation for The Netherlands.

The Effects of Municipal Policy Strategies on Social Assistance Inflow and Outflow in the Netherlands, 1999–2007

Do the local labour market policies of municipalities matter? The scientific debate on such policies mainly concentrates on (1) the effectiveness of active labour market policies and programmes in terms of improving the labour market chances of jobless workers, and (2) the organization of labour market policy in terms of governance, management, and coordination or cooperation with neighbouring municipalities, educational institutes, etc. In this paper we explore both dimensions. We start by describing recent reforms in the Netherlands in which the financial responsibility for social assistance was decentralized to 443 municipalities. The effects of the labour market strategies of municipalities on social assistance inflow and outflow are then identified, measured, and compared in an empirical analysis. We find positive effects of control, activation, employment creation, and coordination strategies on social assistance inflow and outflow. This suggests that the activities of municipalities do matter, although the effects are small and differ across labour market strategies.

A Cointegration Model for Search Equilibrium Wage Formation

This discussion paper resulted in a publication in the Journal of Applied Economics , 9, 235-54. In flow models of the labor market, wages are determined by negotiations between workers and employers on the surplus value of a realized match. From this perspective our study presents an econometric analysis of the influence of labor market flows on wage formation as alternative to the traditional specification of wage equations where unemployment represents the Phillips-curve or wage curve-effects. We estimate a dynamic wage equation for the Netherlands using a cointegration approach. We find that labor flows, and notably flows from outside the labor market, are important determinants for both short run and long run wage setting

The Timing of Labour Reallocation and the Business Cycle: Evidence for The Netherlands

In this paper we study the cyclical behaviour of job and worker flows in The Netherlands. We find that job flows move counter-cyclically while worker flows move acyclically. The persistence of newly created jobs is strongly pro-cyclical while the persistence of destroyed jobs is strongly counter-cyclical. We also examine the relative importance of aggregate and sectoral versus idiosyncratic shocks. We find both shocks to be negatively correlated and idiosyncratic shocks to be somewhat more important in explaining the time variation of job reallocation. Finally, we find that gross job flows account for about one-third of the worker flows. The remainder reflect churning.

Climbing the Ladder: Gender-Specific Career Advancement in Financial Services and the Influence of Flexible Work-Time Arrangements

The aim of this study is to gain insight into the gender-specific career advancement of about 10,000 middle- and top-level managers in a Dutch financial services company. Our results indicate that women earn less, work at lower job levels, but show slightly higher career mobility than men. However, working a compressed four-day nine-hours-a-day workweek turns out to be favourable for women who are ‘rewarded’ for working full time, whereas men are ‘penalized’ for not working five days a week. Introducing this form of flexibility into a predominantly masculine organizational culture offers new opportunities for career advancement, albeit solely for women.