The Dutch welfare state is under pressure. Future trends of ageing and globalisation render public finances unsustainable and worsen the position of low-skilled workers on the labour market. At the same time, welfare state institutions seem insufficiently adapted to changed socio-cultural circumstances. Moreover, they cause inactivity among elderly workers, women and social benefit recipients. To prepare for the future, the Dutch government aims to raise labour supply and improve human capital. This study explores how welfare state reform can contribute to these goals. Thereby, we take into account the key social and economic functions that the welfare state fulfils in our society. We analyse a number of reforms in Dutch institutions from a broad welfare perspective and quantify their effects on the labour market and the income distribution. The study also develops three comprehensive prototype welfare state reforms for the Netherlands in the future. We explore how robust these different prototypes are for immigration, economic integration and technological change.
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Paper provided by CPB Netherlands Bureau for Economic Policy Analysis in its series CPB Special Publications with number
60.
Find related papers by JEL classification: D3 - Microeconomics - - Distribution D5 - Microeconomics - - General Equilibrium and Disequilibrium D6 - Microeconomics - - Welfare Economics H2 - Public Economics - - Taxation, Subsidies, and Revenue H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs I3 - Health, Education, and Welfare - - Welfare and Poverty J2 - Labor and Demographic Economics - - Demand and Supply of Labor J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs J6 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies
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