In the past decades unemployment in the Netherlands has gone down substantially. The main suspects responsible for this … decline are the growth of part-time labor, the reform of the benefit system and wage moderation. Nevertheless, in 2002 the … unemployment rate in the Netherlands has increased somewhat. However, since the huge decline in unemployment was due to structural …

performance. Our analysis has two special features. First, apart from the two labour market states - employment and unemployment … that a shock to the net flow from unemployment to employment drive the unemployment rate and the participation rate in … interact and affect the evolution of unemployment rates and participation rates, the two main indicators of labour market …