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Does the Dutch Model Really Exist?

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  • van der Hoek, M. Peter

Abstract

The policy that has led from the ‘Dutch disease’ (in the 1980s) to the ‘Dutch miracle’ (in the 1990s) consists of three tracks: 1) wage moderation, 2) retrenching public expenditure and reducing the tax burden, 3) slimming the welfare system. The wage moderation track seems to have been the most important one. The term ‘Dutch model’ refers to the socioeconomic system of the Netherlands. Most observers point in particular to the relatively low unemployment rate to indicate the success of this model. However, the economic inactivity rate in the Netherlands is not lower than in neighboring countries. This suggests that open unemployment in the Netherlands has partly been replaced with hidden unemployment. In particular the disability scheme seems to contain a large component of hidden unemployment. Another feature of the Dutch model is its consensus seeking nature, which is fostered by its institutional structure.

Suggested Citation

  • van der Hoek, M. Peter, 2000. "Does the Dutch Model Really Exist?," MPRA Paper 5909, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:5909
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    File URL: https://mpra.ub.uni-muenchen.de/5909/1/MPRA_paper_5909.pdf
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    References listed on IDEAS

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    1. Willem Adema & Marcel Einerhand & Bengt Eklind & Jorgen Lotz & Mark Pearson, 1996. "Net Public Social Expenditure," OECD Labour Market and Social Policy Occasional Papers 19, OECD Publishing.
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    Cited by:

    1. Damien de Walque, 2003. "Long-term Disability Insurance in the Netherlands: A Problem of Hidden Unemployment?," Latin American Journal of Economics-formerly Cuadernos de Economía, Instituto de Economía. Pontificia Universidad Católica de Chile., vol. 40(121), pages 485-494.
    2. João Sousa Andrade & António Portugal Duarte, 2013. "The Dutch Disease in the Portuguese Economy," GEMF Working Papers 2013-05, GEMF, Faculty of Economics, University of Coimbra.

    More about this item

    Keywords

    Dutch model; welfare system; Dutch disease; Dutch miracle;

    JEL classification:

    • H5 - Public Economics - - National Government Expenditures and Related Policies

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