The Netherlands and the United Kingdom: a European unemployment miracle?

Stephen Nickell () and J.C. van Ours
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J.C. van Ours: Tilburg University, Center for Economic Research

No 119, Discussion Paper from Tilburg University, Center for Economic Research

Abstract: The unemployment rates in both the UK and the NL have declined substantially since the early 1980s. In this paper we argue that this is because of a significant reduction in the equilibrium unemployment rate, which was itself due to combinations of supply-oriented policies. The combinations are partly overlapping and partly differing between the two countries. The main difference is in wage negotiations. Where the Dutch unions were already co-operative, British unions were made to co-operate. The main overlap is in the popularity of part-time work and the re-enforcement of financial incentives for work for unemployed workers collecting benefits.

New Economics Papers: this item is included in nep-eec
Date: 1999
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