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Reinventing the welfare state

Author

Listed:
  • Ruud de Mooij

    (CPB Netherlands Bureau for Economic Policy Analysis)

Abstract

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.

Suggested Citation

  • Ruud de Mooij, 2006. "Reinventing the welfare state," CPB Special Publication 60, CPB Netherlands Bureau for Economic Policy Analysis.
  • Handle: RePEc:cpb:spcial:60
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    References listed on IDEAS

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    1. Madeline Zavodny, 1997. "Welfare and the locational choices of new immigrants," Economic and Financial Policy Review, Federal Reserve Bank of Dallas, issue Q II, pages 2-10.
    2. Courtney Coile & Jonathan Gruber, 2000. "Social Security and Retirement," NBER Working Papers 7830, National Bureau of Economic Research, Inc.
    3. Annemiek Vuren & Daniel Vuuren, 2007. "Financial Incentives in Disability Insurance in the Netherlands," De Economist, Springer, vol. 155(1), pages 73-98, March.
    4. Klaas de Vos & Arie Kapteyn, 2004. "Incentives and Exit Routes to Retirement in the Netherlands," NBER Chapters,in: Social Security Programs and Retirement around the World: Micro-Estimation, pages 461-498 National Bureau of Economic Research, Inc.
    5. Timo Tyrväinen, 1995. "Real Wage Resistance and Unemployment: Multivariate Analysis of Cointegrating Relations in 10 OECD Countries," OECD Jobs Study Working Papers 10, OECD Publishing.
    6. Tuomala, Matti, 1990. "Optimal Income Tax and Redistribution," OUP Catalogue, Oxford University Press, number 9780198286059.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Catherine Mathieu & Henri Sterdyniak, 2008. "European social model(s) and social Europe," Documents de Travail de l'OFCE 2008-10, Observatoire Francais des Conjonctures Economiques (OFCE).
    2. Geert Mesters & Victor van der Geest & Catrien Bijleveld, 2014. "Crime, Employment and Social Welfare: an Individual-level Study on Disadvantaged Males," Tinbergen Institute Discussion Papers 14-091/III, Tinbergen Institute.
    3. L. Bettendorf & E. Dijkgraaf, 2011. "The bicausal relation between religion and income," Applied Economics, Taylor & Francis Journals, vol. 43(11), pages 1351-1363.
    4. Wim Suyker & Henri de Groot & P. Buitelaar, 2007. "India and the Dutch economy; stylised facts and prospects," CPB Document 155, CPB Netherlands Bureau for Economic Policy Analysis.
    5. Jan C. van Ours, 2010. "Do We Need Crisis-Specific Labor Market Policies? Lessons from Dutch Miracle - Part II," CESifo Forum, Ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 11(1), pages 29-36, April.
    6. repec:spo:wpecon:info:hdl:2441/6157 is not listed on IDEAS
    7. repec:spo:wpecon:info:hdl:2441/5082 is not listed on IDEAS
    8. Catherine Mathieu & Henri Sterdyniak & Thomas Seguin, 2007. "Annex 6 : What future for Social Europe ?," Sciences Po publications info:hdl:2441/5082, Sciences Po.
    9. Wim Suyker & Henri de Groot, 2006. "China and the Dutch economy," CPB Document 127, CPB Netherlands Bureau for Economic Policy Analysis.
    10. Pierre Koning & Joëlle Noailly & Sabine Visser, 2007. "Do non-profits make a difference? Evaluating non-profit vis-à-vis for-profit organisations in social services," CPB Document 142, CPB Netherlands Bureau for Economic Policy Analysis.
    11. Gosta Esping-Andersen, 2008. "Childhood investments and skill formation," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 15(1), pages 19-44, February.
    12. Callan, Tim & Nolan, Brian & Walsh, John R. & Whelan, Christopher T. & Maitre, Bertrand, 2008. "Tackling Low Income and Deprivation: Developing Effective Policies," Research Series, Economic and Social Research Institute (ESRI), number RS1.
    13. Victoria Chorny & Rob Euwals & Kees Folmer, 2007. "Immigration policy and welfare state design; a qualitative approach to explore the interaction," CPB Document 153, CPB Netherlands Bureau for Economic Policy Analysis.
    14. Egbert Jongen, 2009. "An analysis of individual accounts for the unemployment risk in the Netherlands," CPB Document 186, CPB Netherlands Bureau for Economic Policy Analysis.
    15. Wim Suyker, 2007. "The Chinese economy, seen from Japan and the Netherlands," CPB Memorandum 185, CPB Netherlands Bureau for Economic Policy Analysis.
    16. Jan C. van Ours, 2006. "Leaving "Hotel California": How Incentives Affect Flows of Benefits in the Netherlands," Vierteljahrshefte zur Wirtschaftsforschung / Quarterly Journal of Economic Research, DIW Berlin, German Institute for Economic Research, vol. 75(3), pages 186-207.

    More about this item

    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, Well-Being, 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, Vacancies, and Immigrant Workers

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