Public and private sector wages in the Netherlands

Joop Hartog*, Hessel Oosterbeek

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

64 Citations (Scopus)


There is much debate in the Netherlands about underpayment of public sector workers relative to private sector workers. In this paper we analyze the wage structures in both sectors, using an endogenous switching regression model. Unlike previous Dutch studies, we find that the earnings prospects of public sector workers are better in the public sector than in the private sector. For private sector workers we find the exact opposite; their earnings prospects are better in the private sector. Moreover the allocation over sectors points to comparative advantages.
Original languageEnglish
Pages (from-to)97-114
Number of pages18
JournalEuropean Economic Review
Issue number1
Publication statusPublished - Jan 1993
Externally publishedYes


Dive into the research topics of 'Public and private sector wages in the Netherlands'. Together they form a unique fingerprint.

Cite this