Reducing labour market flexibility: A causal inference study on reform in The Netherlands

C-Tier
Journal: Economics Letters
Year: 2025
Volume: 247
Issue: C

Authors (4)

Patra, Kamalika (not in RePEc) Neuteboom, Nora (not in RePEc) Kapetanios, George (King's College London) Ventouri, Alexia (not in RePEc)

Score contribution per author:

0.251 = (α=2.01 / 4 authors) × 0.5x C-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We investigate whether the Balanced Labour Market Act (WAB) of 2020, intended to reduce the disparity between permanent and temporary employees in The Netherlands, has achieved its desired aim. Using a synthetic control method, we find that the introduction of the WAB led to a substantial reduction in the number of temporary contracts, whereas the number of permanent workers increased. As of the WAB’s announcement in May 2019, strong anticipatory effects were evident. Inconclusive evidence of unintended side-effects, such as the substitution of temporary workers by self-employment work schemes, marks an avenue for future research.

Technical Details

RePEc Handle
repec:eee:ecolet:v:247:y:2025:i:c:s0165176525000357
Journal Field
General
Author Count
4
Added to Database
2026-01-25