Low-Wage Work in the Netherlands

"In the 'war of the models' between variants of capitalism, the Dutch economy has had good and bad publicity. There is the 'Dutch disease' that prices manufacturing out of some markets and criticisms of Dutch collective bargaining as being insufficiently centralized or decentralized. There is also much ballyhoo about the virtues of the Polder model and Dutch economic planning. By examining how the Dutch have dealt with less skilled and low-wage work, Low-Wage Work in the Netherlands illuminates how the Dutch system operates to deal with a problem that affects all economies. The depth of discussion of specific industries and workers offers more insight into how the Dutch do it than the broad generalizations that abound in analyses of the varying capitalist models."
-RICHARD B. FREEMAN, Herbert Ascherman Chair in Economics, Harvard University and Senior Research Fellow in Labour Markets, London School of Economics

"A lot has been written about the so-called Polder model, the Dutch model of consensus building, to which many of its economic successes of the 1990s have been attributed. However, little attention has been paid to the downside of this success: the strong growth of low-wage employment. This volume fills the gap by giving extensive consideration to the bottom segment of the labor market. It is unique in discussing and analyzing low-wage work at the national level as well as at the industry and the company level. It convincingly demonstrates how strong job growth may have the price of erosion of income security and job quality at the lower end of the labor market. Reading Low-Wage Work in the Netherlands is indispensable for everyone who wants to know how the Dutch Polder model really works."
-PAUL DE BEER, Henri Polak Professor of Industrial Relations, University of Amsterdam

"Any student of the low-wage labor market must at some point answer several questions. How much can institutional differences affect the strategies that firms adopt? How, in turn, can these strategies affect outcomes for low-wage workers? Is it possible to create a high road environment for low-skill employment? This fascinating study provides an in-depth analysis that helps answer such questions in industries familiar to all labor market researchers-retail, hotels, health care, call centers, and food-in the context of the 'Dutch model.' The authors weave rich case study information together with statistical data to provide a vivid tapestry of work conditions under the 'Dutch model.' Both their findings and their careful analytic approach make Low-Wage Work in the Netherlands a must read for serious labor market researchers."
-JULIA I. LANE, senior vice president, National Opinion Research Center, University of Chicago

The Dutch economy has often been heralded for accomplishing solid employment growth within a generous welfare system. In recent years, the Netherlands has seen a rise in low-wage work and has maintained one of the lowest unemployment rates in the European Union. Low-Wage Work in the Netherlands narrows in on the causes and consequences of this new development. The authors find that the increase in low-wage work can be partly attributed to a steep rise in the number of part-time jobs and non-standard work contracts—46 percent of Dutch workers hold part-time jobs. The decline in full-time work has challenged historically powerful Dutch unions and has led to a slow but steady dismantling of many social insurance programs from 1979 onward. At the same time, there are hopeful lessons to be gleaned from the Dutch model: low-wage workers benefit from a well-developed system of income transfers, and many move on to higher paying jobs. Low-Wage Work in the Netherlands paints a nuanced picture of the Dutch economy by analyzing institutions that both support and challenge its low-wage workforce.

WIEMER SALVERDA is director of the Amsterdam Institute for Advanced Labour Studies.

MAARTEN VAN KLAVEREN is researcher and consultant at STZ Consultancy and Research.

MARC VAN DER MEER is director of studies at the Amsterdam Institute for Advanced Labour Studies.

CONTRIBUTORS: Ria Hermanussen, Robert Solow, Wim Sprenger, Kea Tijdens, Arjen Van Halem. 

A Volume in the RSF Case Studies of Job Quality in Advanced Economies