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Institutions and labor market outcomes in the Netherlands

Author Info

Listed author(s):
  • Gautier, Pieter A.

    ()

    (VU University Amsterdam)

  • van der Klaauw, Bas

    ()

    (VU University Amsterdam)

Abstract

In this paper we provide a description of the labor market in the Netherlands. Compared to other OECD countries labor force participation is high and the unemployment rate is low (also for young workers). Among the unemployed there are, however, relatively many long-term unemployed workers. Labor force participation of older workers is increasing but still low and Dutch workers have relatively low working hours. Disability is high, particularly among young individuals. We discuss the relevant labor market institutions in the Netherlands and use recent reforms to assess the importance of the different reforms. Where possible we provide an international comparison. We find that inflow into benefits programs responds to (financial) incentives. The outflow is much more difficult to affect, in particular we could not find any evidence of substantial positive effects of active labor market programs (which are frequently offered in the Netherlands).

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Paper provided by IFAU - Institute for Evaluation of Labour Market and Education Policy in its series Working Paper Series with number 2009:28.

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Length: 44 pages
Date of creation: 17 Dec 2009
Handle: RePEc:hhs:ifauwp:2009_028
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Keywords: Institution; incentives; labor market reforms; participation; unemployment; disability;

Find related papers by JEL classification:

  • H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation
  • H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs
  • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
  • J08 - Labor and Demographic Economics - - General - - - Labor Economics Policies
  • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
  • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
  • J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies
  • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy

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Cited by:

  1. Anders, Forslund & Fredriksson, Peter, 2009. "Income support systems, labour supply incentives and employment – some cross-country evidence," Working Paper Series, Center for Labor Studies 2010:3, Uppsala University, Department of Economics.

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