This paper analyses the causes of the Dutch Miracle. Low wage increases in The Netherlands compared to the rest of Europe are the main factor explaining the fast employment growth. Two factors can explain wage growth lagging behind: the 1982 Wassenaar-agreement between trade unions and employers...

In flow models of the labor market, wages are determined by negotiations between workers and employers on the surplus value of a realized match. From this perspective our study presents an econometric analysis of the influence of labor market flows on wage formation as alternative to the...