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Summaries

A just distribution of incomes P.J. van Wijngaarden, P.L.J. Hermkens, E.W.A. Knippers

In this article the attitude of the population with regard to a just distribution of incomes is compa­ red with the Dutch government’s policy.

In 1987 a representative sample of the Dutch po­ pulation (N = 795) was asked about their attitude to income inequality and about the criteria for the justification of income differentials. The conclu­

sions from previous enquiries (1976, 1980, 1983) were reconfirmed. First, there still exists an ethic of equalization, i.e. a preference for smaller inco­ me differentials by taking something off the hig­ her incomes and adding to the lower. Second, the most important criteria for income differentials continue to be achievement criteria: ‘commit- ment/effort’ and ‘quality of output’.

In contrast, the government prefers delevelling and free market forces. There is a large discre­ pancy between the government’s and population’s approach to income distribution.

Poverty and research on poverty in the EC: Preliminary results for the Netherlands J. Berghman, R. Muffels, A. de Vries

In this article the first results of a panel-research study in five countries of the EC (The Nether­ lands, Belgium, GD of Luxembourg, France and Republic of Ireland) on the situation and evoluti­ on of poverty are presented. The central aim is to give an overall picture of the distribution of po­ verty amongst different social groups in the Ne­ therlands. The methods used for calculating po­ verty lines are the ‘legal or official poverty line’ and the ‘Subjective Poverty Line’ (SPL) method. When applied to the Dutch sample (data from Oc­ tober 1985) one finds that 10.9% of all households should be considered to be ‘poor’ according to the

legal poverty line (have an income below this line) and 17.0% is living in insecurity of subsistence according to the SPL. For both methods the dis­ tribution of the ‘poor’ over different social carac- teristics has been analysed. This made clear that high risk groups for being in insecurity of sub­ sistence are the unemployed, especially the long­ term unemployed, singles (widows, divorced fe­ male heads of household), particularly single pa­ rents and the elderly. A comparison of the inci­ dence of insecurity of subsistence among house­ holds with a head on active age shows that, bet­ ween 1982 and 1985, - the period of the econo­ mic recession in which the Dutch government has made some clear cuts in entitlement conditions and in the level of social security benefits - the number of households in insecurity of subsistence has increased from 7.4% to 14.9%. Also attention is payed to the problem of ‘non take-up’ within the social assistance and the rent subsidy schemes. Finally some conclusions are drawn regarding so­ cial security policies. Because the employment status of the head of the household presents itself as the main determinant of ‘poverty’ it is clear that the government should give priority to an ac­ tive employment policy. Secondly because of the serious problem of ‘non take-up’ it is suggested that the government should pay as much attention to the non-take up of existing social security rights as it does to the problem of fraud.

Wage rate differentials between men and wo­ men in the Netherlands

J.J. Schippers, J.J. Siegers

This article reports on research into the causes and nature of wage rate differentials between men and women. The first part of the article concen­ trates on the question how different (versions of) economic theories can explain the existence of wage rate differentials between men and women.

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To answer this question a review of the most im­ portant labour market theories is given. The se­ cond part reports on a number of empirical stu­ dies using data for the Netherlands. It is conclu­ ded that overall wage rate inequality between men and women is to a large extent determined by in­ direct pay differentials (equal pay for men and women that don’t possess equal endowments). It is also concluded that wage rate differentials bet­ ween job levels are of less importance than wage rate differentials inside job levels for the determi­ nation of overall wage rate inequality.

A hedonic interpretation of allocation and re­ muneration

J. Hartog

This article discusses a specific theoretical frame­ work for the analysis of the labour market. This framework is consistent with current economic analysis, which describes the labour market as a meeting place of supply and demand. The speci­ fic character originates from the ambition to emp­ hasize the relationships between different markets and to conceptualize them in an well-organized model. The basis for this approach is laid by Tin­ bergen in the fifties, but there is also analytical affinity with models for the markets of consump­ tion goods, which are developed later.

A set of markets for consumption goods can be described by reducing the goods to bundles of re­ levant characteristics of the goods. This is the ap­ proach of a ‘hedonic price equation’. In this arti­ cle the model is explained and some empirical tests and results for the Netherlands are dis­ cussed.

Payment systems bargaining in the Ne­ therlands

Frank Pbt

In the eighties the societal debates on payment systems entered a new phase. An analysis is made of the logic of action in the case of management and employees. In the case of the managements’ logic of action payment systems are connected with optimization of the relationship between la­ bour costs and productivity and with control of workers’ behaviour. The main strategy of mana­ gement is increased payment differentiation and the (re)establishment of payment by results. With

the employees’ logic of action it is a question of optimizing the relationship between effort and payment and of attainment and expansion of code- termination in this matter. The trade unions reject bonus schemes and want more payment for effort aspects in job evaluation systems. After an analy­ sis and review of these logics of action a proposal is made for a new payment system, combining functional flexibility and income security.

The costs of pensions in the 21st century J.B. Kune

This article compares the results of seven recent studies into the future development of costs of old age pensions in the Netherlands. The total costs of old age insurance will amount to 35% of gross wages in 2030. At the moment the pension costs amount to 19 a 20% of gross wages. Hence there is an important problem of distribution of inco­ me. A policy aimed at economic growth will be the best solution.

Wages, technology and society. The search for flexibility

Marcel Bolle de Bal

In this article a comparison is made between de­ velopments in capitalist and socialist countries, related to payment systems. In both types of coun­ tries there is a tendency towards increased pay­ ment differentiation and the (re)establishement of payment by results. It is stated that the thesis of technological determinism is not satisfactory to explain this tendency. Payment systems are con­ nected with developments in the socio-economic system (labour market), the socio-political system (collective relations), the socio-culturel system (norms and values), the technical production system and the system of work organization. In the analysis is shown how these developments dif­ fer and converge in socialist and capitalist countries.

Job evaluation and sex J. de Bruijn

The Law on Equal Wages (1975) and the Law on Equal Treatment (1980) have so far not resulted in the abolishment of the historical cleavage between

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Sum m aries

wages for men and woman. The execution of the Law on Equal Wages rests for an important part on job evaluation, i.e. equal unequal remueration between the sexes is discussed. Special attention is paid to the role and function of job evaluation. Systems of job evaluation should be analysed in terms of sex-discriminating effects, in the imple­ mentation as well as in the systems themselves. Finally some suggestions are given for further re­ search.

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