It is often assumed that households that hire a domestic worker pay low and insecure wages. Given the high incidence of undeclared work in the sector, reliable insights into the wages that households pay in practice remain scarce. This study contributes to the literature by describing the wages that households pay to domestic workers and by identifying sources of wage differences across households. To provide a complete description of wages, we ask what household pay per hour (hourly wages) and whether they continue wage payments during cancellations (wage security). To identify sources of differences in hourly wages and wage security, we consider characteristics of households, workers and their relationships.
The study draws on survey data collected among a representative sample of Dutch households in October 2023, providing data on 440 households that hire a domestic worker.
Results show that most households pay above minimum wage and that few households provide wage security. Hourly wages are associated with household income, household composition and domestic workers’ age and ethnic background. Wage security is associated with household income and the length of the relationship between households and domestic workers.
Findings suggest that it is worthwhile to distinguish between hourly wages and wage security, as both are substantively different things. This has implications for policymakers that seek to improve the position of domestic workers.
