From Amsterdamned to I Amsterdam: Migrants on the Amsterdam Labour Market Robert Kloosterman

Robert Kloosterman I Amsterdam2 What’s on offer today? Brief analysis of the Amsterdam labour market around 1990 Brief analysis of the current Amsterdam labour market situation What happened in between? Conclusions

Robert Kloosterman I Amsterdam3 1. The Amsterdam labour market around 1990 Unemployment very high In 1988, number of unemployed in Amsterdam about 72,300 or 24 per cent of the city’s workforce Unemployment rate in Amsterdam twice as high as national rate and highest of largest cities Unemployment concentrated among young, non-western migrants, and women

Robert Kloosterman I Amsterdam4 1. The Amsterdam labour market around 1990 Labour market situation in the Netherlands and Amsterdam in particular: poster boy of Esping- Andersen’s (1990; 1999) corporatist welfare state (high level of decommodification and no active labour market policies) in post-industrial transition Heavy job losses (particularly low-skilled) in manufacturing not compensated by job growth in service sector due to high legal minimum wage and lack of demand as outsourcing by households remains modest

TRobert Kloosterman I Amsterdam5 1. The Amsterdam labour market around 1990 Velvet exit routes: non-participation relatively attractive (e.g. disability benefits) contributing to emergence of subcultures of unemployed Strong protection of insiders and high barriers for newcomers: young, women, non-western migrants

Robert Kloosterman I Amsterdam6 1. The Amsterdam labour market around 1990 Around 1990: the Dutch economy was the sick man of Europe. Job growth that took place in and especially around Amsterdam (Schiphol) often benefited workers from outside the city (mismatch). Within the Netherlands, Amsterdam stood out in a negative sense.

Robert Kloosterman I Amsterdam7 2. The Current Amsterdam labour market Strong job growth after 1996 and again after 2005 Growth concentrated in services, notably in producer services and, to a lesser extent personal services Unemployment rate in Amsterdam has gone down steadily after 1995

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Robert Kloosterman I Amsterdam10 Unemployment in Amsterdam

Robert Kloosterman I Amsterdam11 2. The Current Amsterdam labour market Job growth at first highly selective: young, higher educated workers (partly from outside Amsterdam), but strong demand effectively shortened labour queue and, eventually, non- western migrants benefited as well

Robert Kloosterman I Amsterdam12 2. The Current Amsterdam labour market Number of employed second-generation non- western migrants rose from 26,000 in 2000 to 48,000 in 2008, while at the same time the rate of active labour participation rose from 54.8 to 59.2 Situation of first-generation also improved, rate of active labour participation rose from 47.7 in 2000 to 50.0 in 2008

Robert Kloosterman I Amsterdam13 2. The Current Amsterdam labour market Share of second-generation non western- migrants on welfare in 2006 much lower than first-generation: 11.6 vs Self-employment also rose, both for first- and second generation non-western migrants, but still higher among first-generation 5.7 per cent in 2007 against 3.7 among second-generation

T Robert Kloosterman I Amsterdam14 3. What happened? National level Long series of incremental changes in corporatist institutional framework: reduction of minimum wage and welfare, introduction more active labour market policies, changes in fiscal regime eroding privileged position “housewife”, closure of velvet exit routes. Using and enlarging of loopholes (part-time work, temping agencies, self-employment) to boost labour market flexibility

Robert Kloosterman I Amsterdam15 3. What happened? National level Rapid rise of female labour participation also due to changes in attitudes Strong growth of producer and personal services (international and domestic demand)

T Robert Kloosterman I Amsterdam16 3. What happened? National level Gradual shift in demographic composition: smaller cohorts entering the labour market Younger cohorts better educated (and more suitable for jobs in service sector)

Robert Kloosterman I Amsterdam17 3. What happened? Amsterdam Urban renaissance very pronounced in Amsterdam (only “global” city, rich in cultural amenities), highly attractive for work, leisure, and especially living Historically strong producer service and cultural industries orientation foundation for rapid growth after 1995

Robert Kloosterman I Amsterdam18 3. What happened? Amsterdam Relatively high wages and high general labour participation rate in combination with presence of single and two-earner households generate demand for personal services Gradual end to mismatch: old guest workers reach retirement age, while second-generation much better positioned for new jobs

Robert Kloosterman I Amsterdam19 4. Conclusions Dutch case shows malleability of institutional framework over time through near endless tinkering. Loopholes very important, way to get around institutional barriers that kept out newcomers Highly successful transformation of Dutch economy and its labour market after 1995

Robert Kloosterman I Amsterdam20 4. Conclusions Among cities, clear winners and losers. Well- connected, economically diverse, attractive (cultural and educational amenities) cities have benefited from urban renaissance and re- emergence of agglomeration economies. Amsterdam clear winner, pocket size global city, producer services, important global media hub, cultural capital of the Netherlands.

T Robert Kloosterman I Amsterdam21 4. Conclusions Amsterdam’s job machine has reached the non- western migrant population. Expansion of number employed and rise of participation rate, especially among second generation. However, even among second generation, still one in eight on welfare.

Robert Kloosterman I Amsterdam22 4. Conclusions Notwithstanding clear success in terms of labour market position, danger still exists of concentration of long-term employment among specific ethnic/religious groups contributing to radicalisation, criminalisation, alienation etc.

T Robert Kloosterman I Amsterdam23 Thank you!