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Labour market institutions and economic performance in the Netherlands

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  • Lei Delsen
  • Erik Poutsma

Abstract

The central question of this article is whether or not effectiveness and efficiency are improved by the stronger reliance on markets given Dutch labour market institutions and their resulting corporatist wage formation. In answering this question, besides the influence on the production costs (neoclassical approach), we explicitly deal with and quantify the 'hidden' transaction costs (institutional economics approach) of more decentralized labour relations, flexibilization of the labour market, and working conditions 'a la carte'. The results presented cast doubt on both the efficiency and the effectiveness of recently introduced tailor-made solutions in the Dutch economy.

Suggested Citation

  • Lei Delsen & Erik Poutsma, 2005. "Labour market institutions and economic performance in the Netherlands," International Economic Journal, Taylor & Francis Journals, vol. 19(2), pages 169-196.
    • Handle: RePEc:taf:intecj:v:19:y:2005:i:2:p:169-196
    DOI: 10.1080/10168730500080576
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    References listed on IDEAS

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    Cited by:

    1. Cho, Joonmo & Lee, Kyu-Young, 2007. "Deregulation of dismissal law and unjust dismissal in Korea," International Review of Law and Economics, Elsevier, vol. 27(4), pages 409-422, December.
    2. Colja Schneck, 2021. "Trends in Wage Inequality in the Netherlands," De Economist, Springer, vol. 169(3), pages 253-289, August.
    3. Evgeniy Kutsenko & Ekaterina Islankina & Alexey Kindras, 2018. "Smart by Oneself? An Analysis of Russian Regional Innovation Strategies within the RIS3 Framework," Foresight and STI Governance (Foresight-Russia till No. 3/2015), National Research University Higher School of Economics, vol. 12(1), pages 25-45.

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