Summary
So far, the labour market has not received any special attention from macro-econometric model builders. In this article an attempt has been made to describe the labour market in detail, paying attention to such important phenomena as the friction between labour supply and demand, the heterogeneity of labour, the dependence of labour supply on the labour-market situation, the Phillips mechanism and the impact of real wages on labour demand. To make it suitable for policy simulations, the model has been extended to a complete macro-econometric model, taking account of the fact that both labour and capital limit the production possibilities.
This is a preview of subscription content, log in via an institution to check access.
Similar content being viewed by others
References
Aarts, L.et al., ‘Determinanten van WAO-toetreding, Een eerste verkenning,’Economisch Statistische Berichten, 66 (1981), pp. 1132–1138.
Aigner, D., C.A.K. Lovell and P. Schmidt, ‘Formulation and Estimation of Stochastic Frontier Production Models,’Journal of Econometrics, 6 (1977), pp. 21–37.
Bosch, F.A.J., and C. Petersen, ‘De omvang van de verborgen werkloosbeid in de WAO,’Economisch Statistische Berichten, 65 (1980), pp. 52–58.
Brandsma, A.S., and N. van der Windt, ‘Lonen en afwenteling,’ Institute for Economic Research, Erasmus University Rotterdam, Discussion Paper Series, no. 8011/G, 1980.
Broeder, G. den, ‘Between Newton and Cauchy: The Diagonal Variable Metric Method, Theory and Test Results,’Journal of Computational and Applied Mathematics, 6 (1980), pp. 267–273.
Broeder, G. den,Human Capital as a Weapon of Labor, Master's Thesis of Econometrics, Erasmus University Rotterdam, 1981.
Broeder, G. den,A Family of Market Transaction Functions, Foundations of Empirical Economic Research Series, Netherlands Economic Institute, Rotterdam, 1983/1.
Broeder, G. den,AMO-K 82-12, Tussenrapport betreffende de verdere ontwikkeling van her arbeidsmarktmodel, Nederlands Economisch Instituut, Rotterdam, 1983.
Broeder, G. den, J.A.M. Heijke and J. de Koning, ‘De arbeidsmarkt tot 2000: een verdelingsvraagstuk,’Economisch Statistische Berichten, 68 (1983), pp. 1004–1009 and 1036–1042.
Broeder, G. den, and J.A.M. Heijke, Ombuigingen in de collectieve sector 1984–1986. De macroeconomische effecten op korte en middellange termijn van een aantal overheidsmaatregelen, Nederlands Economisch Instituut, Rotterdam, 1984.
Centraal Bureau van de Statistiek,Sociale maandstatistiek, March 1976.
Centraal Planbureau,Een macro-model voor de Nederlandse economic op de middellange termijn (VINTAF II), Occasional Paper no. 12, The Hague, 1977.
Centraal Planbureau,Centraal economisch plan 1979, The Hague, 1979.
Centraal Planbureau, FREIA, Een macro-economisch model voor de middellange termijn, Monografie 25, The Hague, 1983.
Douben, N.H., and M. Herweijer, ‘Arbeidsmarkt, werkloosheid en arbeidsongeschiktheid,’Maandschrift Economie, 43 (1979), pp. 309–320.
Driehuis, W., ‘Labour Market Imbalances and Structural Unemployment,’Kyklos, 31 (1978), pp. 638–661.
Fromm, G., and L.R. Klein, ‘Solutions of the Complete System,’ in: J.S. Duesenberry, G. Fromm, L.R. Klein and E. Koh (eds.),The Brookings Model: Some Further Results, Chicago, 1969.
Hartog, H. den, and H.S. Tjan,Investeringen, lonen, prijzen en arbeidsplaatsen, Centraal Plan-bureau, Occasional Paper no. 2, The Hague, 1974.
Hartog, H. den, and H.S. Tjan, ‘Investment. Wages, Prices and Demand for Labour’,De Economist, 124 (1976), pp. 32–55.
Hartog, H. den, and H.S. Tjan, ‘A Clay-Clay Vintage Model Approach for Sectors of Industry in the Netherlands,’De Economist, 128 (1980), pp. 129–188.
Hartog, J.,Tussen vraag en aanbod; een onderzoek naar het functioneren van de arbeidsmarkt van 1950 tot 1980, Leiden/Antwerp, 1980.
Heijke, J.A.M., J. de Koning, R.J.M. Maas and G. den Broeder,AMO-K: Een arbeidsmarktmodel met twee categorieën arbeid, Nederlands Economisch Instituut, Rotterdam, Olive Series 1982-2.
Heijkc, J.A.M., Arbeidsallocatic en loonstructuur,’ in: J.C. van Ours, C. Molenaar and J.A.M. Heijke,De wisselwerking tussen schaarsteverhouding en beloningsstructuur, Preadviezen bij het rapport Vernieumingen in the arbeidsbestel, Series: Voorstudies en achtergronden nr. V.26, Wetenschappelijkc Raad voor het Regeringsbeleid, The Hague, 1982, pp. 207–302 (published in part as J.A.M. Heijke,Flexibility of Wages and Labour-Market Friction in the Netherlands, Foundations of Empirical Economic Research Series, Netherlands Economic Institute, Rotterdam, 1983/8).
Holt, Ch. C., ‘How Can the Phillips Curve Be Moved to Reduce Both Inflation and Unemployment,’ in: E.S. Phelps (ed.),Micro Economic Foundations of Employment and Inflation Theory, London, 1970.
Houthakker, H.S., ‘The Pareto Distribution and the Cobb-Douglas Production Function in Activity Analysis,’Review of Economic Studies, 23 (1955)
Klerk, R.A. de, H.B.M. van der Laan and K.B.T. Thio, ‘Het CPB en de ontwikkeling van de werkgelegenheid,’Economisch Statistische Berichten, 60 (1975), pp. 480–484.
Koning, J. de,Interpretation, Volume and Causes of Shifts in the UV Relation in the Netherlands in the Period 1947–1980, Foundations of Empirical Economic Research Series, Netherlands Economic Institute, Rotterdam 1982/4.
Kooiman, P. and T. Kloek,Aggregation of Micro Markets in Disequilibrium: Theory and Application to the Dutch Labour Market 1948–1975, Working Paper, Econometric Institute, Erasmus University Rotterdam, 1979.
Kuipers, S.K., and A.H. van Zon, ‘Output and Employment Growth in the Netherlands in the Postwar Period: A Putty-Clay Approach,’De Economist, 130 (1982), pp. 38–70.
Kurukulaaratchy, P.,Time Series Processor, Users Manual, Third edition, Essex, 1977.
Malcomson, J.M., ‘Replacement and the Rental Value of Capital Equipment Subject to Obsolescence,’Journal of Economic Theory, 10 (1975), pp. 24–41.
Muellbauer, J.,Macrotheory vs. Macroeconometrics: The Treatment of ’Disequilibrium’ in Macromodels, Paper presented at the European meeting of the Economic Society, Geneva, 1978.
Nordhaus, W.D., ‘Economic Policy in the Face of Declining Productivity Growth,’European Economic Review, 23 (1982), pp. 131–157.
Phillips, A.W., ‘The Relation between Unemployment and the Rate of Change of Money Wage Rates in the United Kingdom, 1861–1957,’Economica, 25 (1958), pp. 283–299.
Prins, C.J., ‘Enkele determinanten van de rente-ontwikkeling in Nederland,’Economisch Statistische Berichten, 68 (1983), pp. 160–162.
Siddré, W., and J. Theeuwes,De in vloed van werkloosheidsuitkeringen op het werkloosheidspercentage in Nederland, Institute for Economic Research, Erasmus University Rotterdam, 1977.
Siebrand, J.C.,Towards Operational Disequilibrium Macro-Econometrics, The Hague/Boston/ London, 1979.
Solow, R., J. Tobin, C.C. von Weizsäcker and M. Yaari, ‘Neoclassical Growth with Fixed Factor Propertions,’Review of Economic Studies, 33 (1966), pp. 79–115.
Author information
Authors and Affiliations
Additional information
This paper summarises an extensive Dutch report on the construction of a model for the Netherlands labour market. The title of the original report is ‘AMO-K: Een arbeidsmarktmodel met twee categorieën arbeid; (AMO-K, A labour-market model with two categories of labour) ; it was published by the Netherlands Economic Institute (NEI) in Rotterdam in the so-called Olive Series, 1982-2, pp. 403ff. Some details of the model presented in that report were changed after its publication; see G. den Broeder, AMO-K 81-12, Tussenrapport betreffende de verdere ontwikkeling van het arbeidsmarktmodel (Interim report on the further development of the labourmarket model), Rotterdam, September 1983. Since then, only minor changes have been carried through. The model reproduced in this paper is the modified version. The model was developed within the National Programme of Labour-Market Research (NPAO) (now defunct), the NPAO organisation having granted a commission to the NEI in Rotterdam.
Rights and permissions
About this article
Cite this article
Heijke, J.A.M., De Koning, J., Maas, R.J.M. et al. A model of the Dutch labour market (AMO-K). De Economist 133, 484–526 (1985). https://doi.org/10.1007/BF01675838
Issue Date:
DOI: https://doi.org/10.1007/BF01675838