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Wages, collective bargaining and recovery from the crisis in the Netherlands

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  • van Klaveren, Maarten
  • Tijdens, Kea

Abstract

After the Second World War in the Netherlands, one of the most open economies in the world, wage moderation has be a leading theme in macroeconomic policy and industrial rela-tions. When wage restraint met with an overheated labour market and strike movements, social partners accepted the re-placement of a voluntary "social minimum wage" by a statutory minimum wage, introduced in 1969. Due to governmental freezes in the 1990s and 2000s the statutory minimum wage fell relative to the average wage, which left room for the in-crease of low-wage employment. In the 2000s the Dutch econ-omy generated large trade surpluses. However, in 2008-13 domestic private consumption fell substantially and this has, in combination with a housing bubble, seriously frustrated the recovery of the Dutch economy from the crisis. Continuing the Dutch wage moderation tradition in current conditions would cause negative effects, not only on domestic demand but also on the country´s labour productivity and growth potential. Thus, there are good reasons to defend a wage-led strategy as a recovery option in the case of the Netherlands.

Suggested Citation

  • van Klaveren, Maarten & Tijdens, Kea, 2015. "Wages, collective bargaining and recovery from the crisis in the Netherlands," WSI Working Papers 194, The Institute of Economic and Social Research (WSI), Hans Böckler Foundation.
    • Handle: RePEc:zbw:wsidps:194
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    References listed on IDEAS

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    1. Maarten VAN KLAVEREN & Wiemer SALVERDA & Kea TIJDENS, 2009. "Retail jobs in the Netherlands: Low pay in a context of long-term wage moderation," International Labour Review, International Labour Organization, vol. 148(4), pages 413-438, December.
    2. Mauro Mastrogiacomo, 2013. "Reform of the mortgage interest tax relief system, policy uncertainty and precautionary savings in the Netherlands," DNB Working Papers 380, Netherlands Central Bank, Research Department.
    3. Coen Teulings, 2014. "Unemployment and house price crises: Lessons for Fiscal Policy from the Dutch Recession," IZA Journal of European Labor Studies, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 3(1), pages 1-19, December.
    4. Jurriaan Eggelte & Jos Jansen & Guido Schotten & Diederik Dicou, 2014. "Wage Development Considered," DNB Occasional Studies 1201, Netherlands Central Bank, Research Department.
    5. Marc Lavoie & Stockhammer Engelbert, 2013. "Wage-Led Growth: An Equitable Strategy for Economic Recovery," Post-Print hal-01343664, HAL.
    6. Wiemer Salverda & Christina Haas & Marloes Graaf-zijl & Bram Lancee & Natascha Notten & Tahnee Ooms, 2013. "GINI Country Report: Growing Inequalities and their Impacts in the Netherlands," GINI Country Reports netherlands, AIAS, Amsterdam Institute for Advanced Labour Studies.
    7. Wiemer Salverda, 2013. "Extending the Top-Income Shares for the Netherlands from 1999 to 2012: An explanatory note," Technical Notes 201304, World Inequality Lab.
    8. Wiemer Salverda, 2010. "The Netherlands: Minimum Wage Fall Shifts Focus to Part-time Jobs," Chapters, in: Daniel Vaughan-Whitehead (ed.), The Minimum Wage Revisited in the Enlarged EU, chapter 10, Edward Elgar Publishing.
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    Cited by:

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    2. Lott, Yvonne, 2015. "Costs and benefits of flexibility and autonomy in working time: The same for women and men?," WSI Working Papers 196, The Institute of Economic and Social Research (WSI), Hans Böckler Foundation.
    3. Tangian, Andranik S., 2015. "Is the left-right alignment of parties outdated?," WSI Working Papers 198, The Institute of Economic and Social Research (WSI), Hans Böckler Foundation.

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