This paper briefly analyses the shifts in economic theory that have moved policy makers from unambiguously pursuing full employment, to the current state where full employability is justified as being optimal. We also explore how these theoretical developments translated in practice, culminating...

The Netherlands is well known for its high employment growth and corresponding low unemployment rate. At various occasions the so-called Dutch miracle has been applauded, together with the underlying ‘Polder model’. A feature that initially was less recognised in the international debate,...

In this paper the effects of different institutional scenarios on rent creation and rent distribution in a labour market are studied. Rent is generated by sinking costs in human capital investment and this rent is distributed between firms and workers by the wage set. In the bench-mark scenario...