Explaining miracles: Third ways and work and welfare

The emergence of the Dutch miracle – often seen as a result of the famous Polder model – has not only resulted in drastic changes as regards the labour market policy, but also in a performance that is considered superior to most other OECD economies. In addition, it is often suggested that this development may well be considered a prototype of the Third Way politics of contemporary social democracy. Both views are scrutinised and discussed by means of a cross-national and cross-time analysis of 19 liberal democracies within the OECD world. The comparative analysis of the labour market performance, also by means of demographic categories, demonstrates that the performance of the Dutch labour market is neither outstanding nor exceptional. It appears mainly to have been caused by the growth of part-time labour. Hence, one may well doubt whether a Dutch miracle exists at all. The analysis also demonstrates that the Dutch labour market performance is neither optimal nor beneficial to all concerned. Finally, it is observed that the social democratic Third Way turns out to be a trade-off in the Netherlands: welfare is becoming less generous and work comes first.