The Use Of Labor Market Supplements By Central Government In The Netherlands

van der Hoek, M. Peter (1994): The Use Of Labor Market Supplements By Central Government In The Netherlands. Published in: Public Administration Quarterly , Vol. 18, No. 3 (1994): pp. 326-341.

Abstract

This paper reviews an investigation into the application of retention bonuses and labor market allowances in the central government sector in the Netherlands. On average, the supplements amount to approximately one (gross) monthly salary. They mainly accrue to males, who are highly educated, well paid, between 35 and 45 years old and who belong to the four centrally designated groups (accountants, automation experts, financial economists, and tax experts). However, there is some evidence that the efficacy of the supplements is limited. Only a small fraction of those who stayed in their job state that they would have moved if they were not awarded an addition. Moreover, people who move to another job appear to mention the content of the job as their primary motive.

• Item Type: MPRA Paper
• Language: English
• Keywords: Retention bonuses, labor market supplements, public sector pay
• Subjects: J - Labor and Demographic Economics > J4 - Particular Labor Markets > J45 - Public Sector Labor Markets; J - Labor and Demographic Economics > J3 - Wages, Compensation, and Labor Costs > J31 - Wage Level and Structure; Wage Differentials by Skill, Training, Occupation, etc.; H - Public Economics > H8 - Miscellaneous Issues > H83 - Public Administration; Public Sector Accounting and Audits

References

Elliot, R.F. and P.D. Murphy (1987). “The Relative Pay of Public and Private Sector Employees, 1970-1984." CAMBRIDGE JOURNAL OF ECONOMICS 11 (June):107-131. Frederickson, H, George (1990). "Public Administration and Social Equity." PUBLIC ADMINISTRATION REVIEW 50 (March/April): 228-237. Lewis, Gregory B. (1991). “Tumover and the Quiet Crisis in the Federal Civil Service." PUBLIC ADMINiSTRATION REVIEW 51 (March/April): 145-155. Ministerie van Binnenlandse Zaken (1989). OVERHEID & ARBEIDSMARKT 1989. The Hague: Department of the Interior. ______ (1990a). "Vaststelling van de Begroting van het Ministerie van Binnenlandse Zaken voor 1991." TWEEDE KAMER DER STATEN-GENERAAL, vergaderjaar 1990-1991, 21,800 VII, No. 4. The Hague: SDU Uitgeverij. ______ (1990b). "Vaststelling van de Begroting van het Ministerie van Binnenlandse Zaken voor 1991." TWEEDE KAMER DER STATEN-GENERAAL, vergaderjaar 1990-1991, 21,800 VII, No. 17. The Hague: SDU Uitgeverij. ______ (1991). 'BEWUST BELONEN': EEN GEWAARDEERD PERSONEELSINSTRUMENT. The Hague: Department of the Interior. Oxley, Howard, Maria Maher, John P. Martin, and Giuseppe Nicoletti (1990). "The Public Sector: Issues for the 1990s." OECD WORKING PAPER No. 90, Paris: OECD. Stichting Het Nederlands Economisch Instituut (1990). ARBEIDSMARKTKNELPUNTEN BIJ DE RIJKSOVERHEID: EEN KNELLEND PROBLEEM? The Hague: Department of the Interior. Van der Hoek, J.C. (1990). "Flexibele Beloning bij de Overheid." FINANCIEEL OVERHEIDSMANAGEMENT 3 (December),4-6. Van der Hoek, M. Peter (1989). "Pay Differentials between the Private and the Public Sector in the Netherlands." PUBLIC FINANCE QUARTERLY 17 (January): 84-95. Wise, Lois Reeascino (1988). "Dimensions of Public Sector Pay Policies in the United States and Sweden." REVIEW OF PUBLIC PERSONNEL ADMINISTRATION 8 (Summer):61-83. ______ (1994). "Factors Affecting the Size and Performance Awards among Mid-Level Civil Servants in the United States." (in this issue).