The Netherlands

University of the People

Written Assignment Unit 4

Microeconomics

19th February 2023

 Introduction

In this paper, I will talk about and highlight my findings while

researching the Netherlands. First, I will explain the impact of the education on

the unemployment rates and provide percentages for all educational levels.

Then, I will discuss the percentage and causes of unemployment in the

Netherlands, followed by how changes in income affect consumer rate and finally

what impact a disastrous event has had on the country’s economy.

Citizen’s Impact of Education on Unemployment Rates

There is a direct relation to the level of education and unemployment rates

in the Netherlands. People with a higher level of education are less likely to end

up without a job and people with a lower level of education are statistically more

likely to become unemployed.

“Higher educational attainment is often associated with better

employment prospects and the Netherlands is no exception. In 2021 the

employment rate among 25-34 year-olds with tertiary education in the

Netherlands was 20 percentage points higher than among those with below

upper secondary attainment and 6 percentage points higher than among those

with upper secondary or post-secondary non-tertiary attainment.” (OECD, 2022)

Education Completion Percentage Rates

Here are the percentage rates for the different levels of education in the

Netherlands according to www.dutchnews.nl (2022), www.allecijfers.nl (2023),

www.cbs.nl (2021), and www.delta.tudelft.nl (2022) :

• First year high school dropouts : 6%

• Average of high school graduates : 92.6%

 • Bachelor’s degree within 4 years : 53%

• Masters or PhD within 5 years : 41%

Unemployment Rate and Causes

According to www.macrotrends.net (2022), the unemployment rate in the

Netherlands in 2021 was 4.01%, which is a 0.19% increase compared to 2020.

“The current relatively high level of long-term unemployment in the

Netherlands is the result of a slower economic recovery than in other countries.

Wage developments and the alleged inflexibility of the Dutch labour market also

play a role, but to a lesser degree.” www.cpb.nl (2015).

It is also worth noting that the Dutch government has an unemployment

law in place called the “WW” which ensures all citizens receive unemployment

benefits as soon as they unexpectedly lose their jobs, which is a great support

system for the people in the Netherlands.

Changes in Income Related to Consumer Choices

As a Dutch native, I have observed that changes in income can have a

significant impact on consumer choices in the Netherlands. When my income has

been higher, I have had more disposable income and have been able to spend

more on non-essential items such as travel, luxury goods, and entertainment. On

the other hand, when my income has been lower, I have had to prioritize

spending on necessities such as housing, food, and healthcare.

One key way that changes in income impact consumer choices is through

changes in price sensitivity. When my income has been lower, I have been more

conscious of prices and have tended to choose lower-cost alternatives, such as

generic brands, instead of more expensive products. This has allowed me to

stretch my budget further and prioritize spending on essential items.

Which Changes Affect Consumer Decisions?

Consumers make purchasing decisions based on a variety of factors,

including price, quality, availability, brand reputation, and product packaging.

Changes to any of these factors can influence a consumer's decision to buy or not

buy a product.

If a product becomes more expensive, consumers may decide not to buy it.

Conversely, if a product's quality improves, consumers may be more likely to

purchase it. If a product is out of stock or difficult to find, consumers may choose

a substitute or not purchase anything at all.

Brand reputation is also important to consumers, and a negative change

in a brand's reputation can make consumers wary of buying its products. Finally,

the design and packaging of a product can influence a consumer's decision to buy

or not, as visually appealing packaging can make a product more attractive.

The Impact of Disastrous Events on the Economy

Having lived in the Netherlands during a long recession, I have seen the

impact first-hand. The recession, which occurred in the late 2000s and early

2010s, had a significant impact on consumer choices and the economy of the

Netherlands. During the recession, many Dutch consumers experienced a

decrease in disposable income, which led to a decline in consumer spending. As a

result, many businesses in the Netherlands, especially those in the retail and

service sectors, saw a decrease in revenue and some were forced to close.
 Additionally, the recession led to an increase in unemployment in the

Netherlands, which further impacted consumer spending. People who were out of

work or had reduced incomes were less likely to spend money on non-essential

items.

In the long term, the recession and its aftermath also led to changes in

consumer behavior in the Netherlands, with many people becoming more budget-

conscious and prioritizing savings over spending. This shift in consumer behavior

has continued even as the Dutch economy has recovered in recent years.

In conclusion, this paper has highlighted the impact of education on

unemployment rates in the Netherlands, indicating that higher education leads

to better employment prospects. I have also discussed the unemployment rate

and causes in the country, as well as the impact of changes in income on

consumer choices. Moreover, the research showed how different factors, such as

price, quality, availability, brand reputation, and a disastrous event can affect

consumer decisions.

Word count : 905

 References

OECD (2022). Education at a Glance 2021: Netherlands. https://www.oecd-

ilibrary.org/sites/15a32e93-en/index.html?itemId=/content/component/15a32e93-

en#:~:text=Actual%20salaries%20also%20increase%20with,182%20at%20upper

%20secondary%20level

DutchNews.nl (2022, October 19). One in six international students drops out in

first year, study finds. https://www.dutchnews.nl/news/2022/10/one-in-six-

international-students-drops-out-in-first-year-study-

finds/#:~:text=The%20figures%20show%2017%25%20of,against%209%25%20of%

20Dutch%20students

Allecijfers.nl (2023, February 15). Slagingspercentages middelbare scholen

Nederland. https://allecijfers.nl/analyses/slagingspercentages-middelbare-

scholen-nederland/

CBS.nl (2021). Hoe vergaat het studenten in het leenstelsel?

https://www.cbs.nl/nl-nl/longread/statistische-trends/2021/hoe-vergaat-het-

studenten-in-het-leenstelsel-/3-

resultaten#:~:text=De%20slaagpercentages%20verbeteren%20sterk%20als,mom

ent%20is%20de%20trend%20stabiel

TU Delft. (2022). One in four PhDs fails to cross the finish line

https://www.delta.tudelft.nl/article/one-four-phds-fails-cross-finish-line#
MacroTrends (2022). Netherlands - Unemployment rate.

https://www.macrotrends.net/countries/NLD/netherlands/unemployment-rate

CPB.nl (2015). Wait for economic recovery.

https://www.cpb.nl/sites/default/files/publicaties/download/cpb-policy-brief-

2015-11-long-term-unemployment-netherlands.pdf