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Netherlands: Selected Background Issues

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  • International Monetary Fund

Abstract

This paper analyzes whether the lower increase in wages was a factor in the labor productivity and employment developments in the Netherlands. It argues that there is indeed such a link: rapid wage growth leads to a substitution of capital for labor, and hence to less labor-intensive production; slow wage growth leads to less rapid growth of labor productivity and, for the same output growth, results in a better employment performance. The paper also discusses the causes of the lower wage growth in the Netherlands.

Suggested Citation

  • International Monetary Fund, 1995. "Netherlands: Selected Background Issues," IMF Staff Country Reports 1995/049, International Monetary Fund.
  • Handle: RePEc:imf:imfscr:1995/049
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