ABSTRACT
After the Second World War, the Netherlands experienced remarkable economic growth. This favourable economic development can be attributed to a strong growth of both labour supply and labour productivity, the destruction of public and private capital during the war (that stimulated investments after the war), and the liberalization of international trade. Wage moderation also contributed to economic growth. Government and the social partners agreed on the need to limit the growth of real wages. Until 1963 the government set wage guidelines in close co-operation with and supported by employers’ and employees’ organizations.
