Going for Growth - Netherlands

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Netherlands GDP per capita is close to the upper half of OECD countries but productivity has remained stagnant in recent years. Income inequality is below the OECD average. Air pollution is quite high and above levels in other advanced countries. Greenhouse gas emissions per capita are just above the OECD average. Reforms in recent years will improve the job quality and protection of workers on flexible contracts to some extent. Considerable progress has been made in improving the efficiency of the dismissal system and a fairer entitlement and calculation of severance payment between permanent and temporary workers. Reforms have been taken that will help to reduce the financial stability risks stemming from the housing sector. Further reforms are needed to address the labour market duality and to improve the fairness of the labour taxation system. Additional reductions in the marginal tax rates will incentivise second-earners to increase their hours worked. Active labour market policies should be more targeted to ensure that those who are most vulnerable receive enhanced support. Higher levels of public research and development spending should complement existing tax incentives. Growth performance, inequality and environment indicators: Netherlands A. Growth Average annual growth rates (%) GDP per capita Labour utilisation of which: Labour force participation rate Employment rate1 Employment coefficient2 Labour productivity of which: Capital deepening Total factor productivity Dependency ratio

2002-08 1.9 0.6 0.7 0.0 -0.1 1.3 0.2 1.1 0.0

2012-18 1.4 0.4 0.0 0.3 0.0 0.9 0.1 0.8 0.1

Level

Annual variation (percentage points)

2016 28.5 (31.7)*

2013-16 -0.1 (0)*

B. Inequality and environment

Gini coefficient3 Share of national disposable income held by the poorest 20%

4

GHG emissions per capita (tonnes of CO2 equivalent) GHG emissions per unit of GDP4 (kg of CO2 equivalent per USD) Share in global GHG emissions4 (%) * OECD simple average (weighted average for emissions data)

8.7 (7.6)*

0 (0)*

2016 11.8 (10.9)* 0.3 (0.3)* 0.4

Average of levels 2010-16 12.1 (11.3)* 0.3 (0.3)* 0.4

C. GDP per capita is among the highest in the OECD Gap to the upper half of OECD countries5 Per cent 25 GDP per capita 20

GDP per hour worked

15

10

5

0

-5

Source: Panel A: OECD, Economic Outlook Database; Panel B: OECD, Income Distribution and National Accounts Databases; United Nations Framework Convention on Climate Change (UNFCCC) Database and International Energy Agency (IEA), Energy Database; Panel C: OECD, National Accounts and Productivity Databases. StatLink 2 https://doi.org/10.1787/888933955199


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Going for Growth - Netherlands by OECD - Issuu