The Bloom May Be Off The Tulip Model

A Dutch law that gives temps more security could backfire

When envious Europeans look at the so-called Tulip model, what they admire most is how many Dutch people have jobs. In Germany and France, unemployment rates hover stubbornly near 11%. The Netherlands, meanwhile, has a jobless rate of just 4.2%. That's largely because it has dropped almost all restrictions on temporary work. Temps make up approximately 4% of the Dutch working population--three times as many as in Germany and twice as many as in the U.S. Even the smallest Dutch city has a street clogged with temporary-employment agencies.

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