Abstract

In the 1990s, Dutch employers started adopting individualized pay systems, commonly called ‘cafeteria systems’. Reports on their use by employers and employees suggest a bewildering variety in their adoption, design and use (by employees). This paper presents an analytical framework to analyse this variety. We distinguish as the main explanatory factor whether there has been voluntary or coerced adoption. The latter refers to introduction as part of sectoral collective labour agreements. Different adoption drivers are argued to have consequences for the design and employee use of cafeteria systems.

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