Editing Economy of the Netherlands (section)

===Controversial issues===
====Labour market and social welfare====
The Dutch labour market has relatively strict regulations for employers on firing employees, although by June 2014 the [[House of Representatives (Netherlands)|House of Representatives]] has agreed to loosen these regulations.{{update inline|date=October 2018}} Due to the costs of employees and costs of firing them, a large part of the working force (about 15% of the working force) is an independent one person company (ZZP).  They are independent and get paid by delivery without higher social costs.{{clarify|date=October 2018}} Another big part of the workforce is hired as temporary workforce. State unemployment benefits in the form of a 70% benefit of the employee's last-earned salary for up to three years (with a maximum of roughly 2500 euros per month) are available for fired employees, provided that they have worked for a certain minimum time period, usually 26 weeks. Moreover, the self-employed individuals (zelfstandigen zonder personeel (ZZP)) are not automatically covered under the ''Werknemersverzekeringen'', and are not obligated to enroll into unemployment, sickness or disabilities insurance. Self-employed individuals are therefore required to enroll themselves with private insurance companies.<ref name=":02"/><ref>{{cite web|url=http://www.oecd.org/els/soc/34004969.pdf|title=OECD - Social Policy Division - Directorate of Employment, Labour and Social Affairs : Country chapter - Benefits and Wages : The Netherlands|date=2002|website=Oecd.org|access-date=4 January 2018}}</ref>.  The Dutch Government is however, working hard to combat bogus self-employment by applying significant changes and tightening of rules under Wet Deregulering Beoordeling Arbeidsrelaties (DBA).  <ref>https://www.darwinrecruitment.com/new-dutch-legislation-the-impact-of-freelancers/</ref>.

====Age of retirement====
Under the [[Algemene Ouderdomswet|AOW]] (General Old Age Pensions Act) of 1956, every Dutch citizen was entitled to a state pension from the age of 65. However the act was amended in 2012 to increase the pension age in several stages up to 67 in 2024. Married couples and those who live together receive 50% of minimum wage per person, and a single person receives 70% of minimum wage. Most (about 70%) earn an extra pension from private pension funds. Employees are obliged to participate in the sector pension funds.{{clarify|date=October 2018}} The total amount of pension funds at the end of 2009 was some 664 billion euro and by the end of 2019 this had increased to 1560 billion euro, for a population of just over 17 million. Employees receive on average about 70% of their final salary. During the economic crisis{{which|date=October 2018}} and because of low interest rates, pension funds have had difficulty keeping up with inflation.

==== Inequality and redistribution====
With a [[Gini coefficient]] of 25.1 (2013) the income inequality is relatively low in the Netherlands. However, the inequality when measured in distributions of household wealth is high, where the top 1% owns 24% of all net wealth, and the top 10% own 60%. Moreover, rather large wealth disparities persist in the Netherlands in relation to age, where those under 35 years-of-age own 10% as much as older workers. This is a consequence from the low taxation of home ownership and a generous [[Home mortgage interest deduction|mortgage interest deductibility]], which benefit the wealthier households.<ref>{{Cite web|url=https://www.oecd.org/netherlands/OECD2015-In-It-Together-Highlights-Netherlands.pdf|title=In It Together Why Less Inequality Benefits All... in the Netherlands|date=2015|website=Oecd.org|access-date=4 January 2018}}</ref> Due to the generous pensions the pension-related savings are the most important part of wealth in the Netherlands, yet are not subject to capital income taxation, which increases the inequality. The taxation comes as income tax when the saved pension is paid out. People having earned minimum wages only, will not build up any pension. The idea behind a pension is to have a net income after retirement that is comparable to before retirement. The AOW, the Dutch retirement law, guarantees an income up to 70% of minimum wage per person. Therefore, only people earning more than minimum wage need to save to ensure comparable income after retirement.

==== Home mortgage interest deduction ====
The Netherlands was{{when|date=October 2023}} one of the few countries in the world where the interest paid on mortgages is almost fully deductible from income tax. Since 2013 big changes were made. The conditions allowing a borrowing of more than 116% of the value of the home were reduced to 106% and are still continuously being reduced every year. The deduction is also capped to 50.5% and reducing every year.<ref>{{cite web|title=Tariefsaanpassing aftrek kosten eigen woning|url=https://www.belastingdienst.nl/wps/wcm/connect/bldcontentnl/belastingdienst/prive/woning/uw_hypotheek_of_lening/tariefsaanpassing_aftrek_kosten_eigen_woning/tariefsaanpassing_aftrek_kosten_eigen_woning|website=Belastingdienst|access-date=15 May 2017|archive-url=https://web.archive.org/web/20170131120755/http://www.belastingdienst.nl/wps/wcm/connect/bldcontentnl/belastingdienst/prive/woning/uw_hypotheek_of_lening/tariefsaanpassing_aftrek_kosten_eigen_woning/tariefsaanpassing_aftrek_kosten_eigen_woning|archive-date=31 January 2017|url-status=dead}}</ref> Together with the after-effects of the [[Great Recession]] the result was a housing crisis, with a decrease of prices almost 25% percent in some areas. Recent years have shown a recovery of 10% to even 20% per year in the most popular cities.

The Service sector accounts for more than half of the national income, primarily in transportation, distribution and [[logistics]], financial areas, software development and the creative industry. The breadth of service providers in financial services has contributed to the Netherlands achieving a [[Division for the Advancement of Women|DAW]] Index score of 5 in 2012. Industrial activity is dominated by the machinery, electronics/high tech industry, metalworking, oil refining, chemical, and food-processing industries. Construction amounts to about 6% of GDP. Agriculture and fishing, although visible and traditional Dutch activities, account for just 2%.

The Netherlands continues to be one of the leading European nations for attracting foreign direct investment and is one of the five largest investors in the United States. The economy experienced a slowdown in 2005, but in 2006 recovered to the fastest pace in six years on the back of increased exports<ref>{{Cite web|title=Netherlands Business Overview|url=https://bizpages.org/countries--NL--Netherlands|url-status=live|archive-url=https://web.archive.org/web/20200420173355/https://bizpages.org/countries--NL--Netherlands |archive-date=20 April 2020 }}</ref> and strong investment. The pace of job growth reached 10-year highs in 2007. The Netherlands is the fifth-most competitive economy in the world, according to the [[World Economic Forum]]'s [[Global Competitiveness Report]].<ref name="wefcomp">{{cite web|url=http://www.weforum.org/issues/global-competitiveness |title=Global Competitiveness Report 2012–2013 |publisher=World Economic Forum |date=5 September 2012 |access-date=11 June 2013 |url-status=dead |archive-url=https://web.archive.org/web/20141210040419/http://www.weforum.org/issues/global-competitiveness |archive-date=10 December 2014 }}</ref>