Abstract
The Netherlands flexibility under control. Catherine Bruno, Valérie Chauvin. Many of the other European countries envy the Dutch economic performance, especially in the field of employment : employment grew by about 20% from 1982 to 1996 and the unemployment rate has been cut by half from 1982 to 1996. Twenty years ago, economists were discussing about the Dutch disease. Now, they talk about the Dutch miracle. Over the last fifteen years, deep changes happened on the Dutch labor market : part-time jobs developed, wage increases were moderate and the labor time was reduced. The reduction of labor costs seems to be the most important change. Indeed, it improved the Dutch competitiveness, so that foreign trade could boost growth. Moreover, the same rate of growth would have led to more employment than the past thanks to labor time reduction and hourly productivity slowdown. The unemployment rate has been reduced despite the growth of labor force which stems from demographic factors but also from labor market policy changes. Nevertheless, labor market policy is still generous unemployment allowances are high and disabled persons, whose allowances are even higher, represent 10% of total labor force in 1996. So, the Dutch labor market is more flexible since 1982 but the government controls this flexibility in maintaining workers' advantages and social unity bet ween employers and employees.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.