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Does the dutch model really exist?

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  • M. Peter van der Hoek

Abstract

The policy that led from the "Dutch disease" (in the 1980s) to the "Dutch miracle" (in the 1990s) consists of three tracks: wage moderation, retrenching public expenditure and reducing the tax burden, and slimming the welfare system. The wage moderation track seems to have been the most important. The term "Dutch model" refers to the socioeconomic system of the Netherlands. Most observers point particularly 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 been partly 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. Copyright International Atlantic Economic Society 2000

Suggested Citation

  • M. Peter van der Hoek, 2000. "Does the dutch model really exist?," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 6(3), pages 387-403, August.
    • Handle: RePEc:kap:iaecre:v:6:y:2000:i:3:p:387-403:10.1007/bf02294959
    DOI: 10.1007/BF02294959
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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. 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.
    2. 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.

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    JEL classification:

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

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