The Labor Market in the Netherlands 2001–2024: The Long Demise of a Centralized Model

Wiemer Salverda and Joop Hartog ()
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Wiemer Salverda: University of Amsterdam
Joop Hartog: University of Amsterdam

No 18211, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: The Netherlands has long been an example of a highly and centrally institutionalized labor market paying considerable attention to equity concerns. We describe how this model has been falling apart under the influence of the neoliberal ideology. Fracturing of the labor force by the rapid demise of the single-earner model and accelerating immigration, falling union density, and reductions in welfare state provisions have shrunk labor’s market power centrally and decentrally. Wages lagged far behind productivity growth, job security strongly declined and wage inequality increased. This comes to the fore with a lack of offensive union power when after 2016 labor demand accelerates and the economy and employment quickly reach new heights after the pandemic crisis.

Keywords: institutions; dual earners; Netherlands; wages (search for similar items in EconPapers)
JEL-codes: J21 J31 J61 (search for similar items in EconPapers)
Date: 2025-10
New Economics Papers: this item is included in nep-lab
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Published - shortened version published as 'The Labor Market in the Netherlands 2001–2024' in: IZA World of Labor , 2025

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