The Wassenaar Agreement was an agreement reached in 1982 between employers' organisations and labour unions in the

Netherlands ) , anthem = ( en, "William of Nassau") , image_map = , map_caption = , subdivision_type = Sovereign state , subdivision_name = Kingdom of the Netherlands , established_title = Before independence , established_date = Spanish Netherl ...

to restrain wage growth in return for the adoption of policies to combat

unemployment Unemployment, according to the OECD (Organisation for Economic Co-operation and Development), is people above a specified age (usually 15) not being in paid employment or self-employment but currently available for work during the refere ...

and

inflation In economics, inflation is an increase in the general price level of goods and services in an economy. When the general price level rises, each unit of currency buys fewer goods and services; consequently, inflation corresponds to a reduct ...

, such as reductions in

working hours Working(laboring) time is the period of time that a person spends at paid labor. Unpaid labor such as personal housework or caring for children or pets is not considered part of the working week. Many countries regulate the work week by law, s ...

and the expansion of

part-time Part-time can refer to: * Part-time job, a job that has fewer hours a week than a full-time job * Part-time student, a student, usually in higher education, who takes fewer course credits than a full-time student * Part Time Part Time (styliz ...

employment. The agreement has been credited with ending the

wage-price spiral In macroeconomics, a wage-price spiral (also called a wage/price spiral or price/wage spiral) is a proposed explanation for inflation, in which wage increases cause price increases which in turn cause wage increases, in a positive feedback loop. Gr ...

of the 1970s, greatly reducing unemployment and producing strong growth in output and employment. The

International Labour Organization The International Labour Organization (ILO) is a United Nations agency whose mandate is to advance social and economic justice by setting international labour standards. Founded in October 1919 under the League of Nations, it is the first and o ...

describes the Wassenaar as "a groundbreaking agreement, setting the tone for later social pacts in many European countries".

References

Economy of the Netherlands 1982 in labor relations Wassenaar 1982 in the Netherlands {{economics-stub

See also

References