CPB Lecture 2019: Labour market disparities (Report)

CPB Lecture 2019: Labour market disparities (Report)

Last June, Magne Mogstad (Chicago University), Egbert Jongen (CPB) and Wouter Koolmees (minister of Social Affairs and Employment) gave the CPB lecture 2019 on policy interventions for labour market disparities. The legacy of Jan Tinbergen was widely discussed during the lecture. Not only was Tinbergen the founder of the CPB, he also designed various policies to prevent income inequalities. As one of his former students put it: “Jan Tinbergen paved the way for labour market inclusion in the Netherlands”.
Nevertheless, labour markets, both in the Netherlands and abroad, are still prone to disparities. This was emphasized by Magne Mogstad, who argued how wage differentials are due to personal characteristics and are largely independent of company or sector characteristics. In addition, Egbert Jongen offered different policy solutions for wage differentials in the Dutch context, which for instance becomes apparent in the current wage gap Dutch citizens with a Moroccan immigrant background face. One of these solutions was then highlighted by Wouter Koolmees, who argued for the importance of a fair educational system in preventing labour market disparities. ”At the age of twelve, I was following lower vocational education. I was given the opportunity to follow higher forms of education, including university. I am very happy for that, but unfortunately not everybody has had the same opportunities.”