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

Working paper

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.

Authors: Nickell, S; Ours, J

• Publisher: Tilburg University
• Host title: Tilburg University, Center for Economic Research, Discussion Paper
• Volume: 119
• Series: Tilburg University, Center for Economic Research, Discussion Paper
• Publication date: 1999-01-01
• Paper number: 119
• Language: English