Arjen Edzes

Have Dutch Municipalities Become More Efficient In Managing The Costs Of Social Assistance Dependency

Many welfare reforms undertaken in OECD-countries are directed towards enhancing efficiency in the administration and implementation of social security and social benefits. In this perspective the governance reforms in The Netherlands are an example of decentralisation through budgeting of means to municipalities. This brings about a unique twofold experiment in which we compare the efficiency changes in providing social assistance as a result of decentralisation and budgeting and the influence of policy measures at a local level. By using data envelopment analysis we assess the effect of the introduction of the new Work and Social Assistance Act (WSA) in 2004 on cost efficiency. By using a stochastic frontier analysis we assess the impact of municipal policy strategies on cost inefficiencies for the period 2005-2007. We find a clear positive effect of the WSA in 2004 on cost efficiency. Furthermore, we find that in the aftermath, when efficiency slowly dropped after 2005, there is a distinct impact of policy strategies municipalities adopt. Pursuing a strategy of activation raised efficiency significantly, whereas strict control or combinations of strategies led a (weak) fall in efficiency.

The Effects of Municipal Policy Strategies on Social Assistance Inflow and Outflow in the Netherlands, 1999–2007

Do the local labour market policies of municipalities matter? The scientific debate on such policies mainly concentrates on (1) the effectiveness of active labour market policies and programmes in terms of improving the labour market chances of jobless workers, and (2) the organization of labour market policy in terms of governance, management, and coordination or cooperation with neighbouring municipalities, educational institutes, etc. In this paper we explore both dimensions. We start by describing recent reforms in the Netherlands in which the financial responsibility for social assistance was decentralized to 443 municipalities. The effects of the labour market strategies of municipalities on social assistance inflow and outflow are then identified, measured, and compared in an empirical analysis. We find positive effects of control, activation, employment creation, and coordination strategies on social assistance inflow and outflow. This suggests that the activities of municipalities do matter, although the effects are small and differ across labour market strategies.

Human Capital Externalities: Effects for Low-Educated Workers and Low-Skilled Jobs

Broersma L., Edzes A. J. E. and van Dijk J. Human capital externalities: effects for low-educated workers and low-skilled jobs, Regional Studies. Investments in human capital are essential themes in many policy programmes. Besides the direct private returns of education, there is evidence of positive human capital externalities at the level of regions and firms. The results in this paper show that both production and consumption externalities have positive effects on wages. Production externalities are transmitted at the level of firms and not at the regional level. For workers in low-skilled jobs, consumption externalities dominate production externalities. Workers on low-skilled jobs earn higher wages when working in cooperation with workers in high-skilled jobs, while for low-educated workers such cooperation with high-educated workers is negative.

Underqualification as an Opportunity for Low-Educated Workers

Improving the labor market position of low-educated workers is one of the most important goals of regional labor market policy. Underqualification, meaning holding a job at a higher level than expected based on ones formal education, can be—under certain conditions—a favorable position from both an individual and a policy perspective. In this study we used repeated cross-sections of data about Dutch workers from 1996 to 2006 to relate the chances of underqualification to personal, firm, and labor market characteristics. Briefly, we found that, for low-educated workers, firm and personal characteristics are more important than regional characteristics in explaining underqualification. Higher regional unemployment rates lower the chances of being underqualified. Working in smaller firms or firms with many high-skilled jobs has a strong positive effect on the chances of attaining higher level jobs, while working in firms with many highly educated workers lowers these chances. Women and nonnatives are less often underqualified, whereas older workers are more often underqualified. Gaining more insight into the determinants of underqualification is important for developing more effective policy measures that aim to improve the labor market position of the most vulnerable groups in the labor market.

Der grenzüberschreitende Arbeitsmarkt der Niederlande mit Deutschland und Belgien: Jenseits von Romantik

Das niederlandische Verwaltungs- und Politikinteresse fur den grenzuberschreitenden Arbeitsmarkt steht im krassen Gegensatz zu einem Mangel an empirischen Daten uber die tatsachlichen Arbeitsmarktprobleme auf beiden Seiten der Grenze. Die Arbeitslosenquoten in niederlandischen Grenzregionen sind hoher als auf der anderen Seite in Deutschland, aber das bedeutet nicht zwangslaufig, dass es fur niederlandische Arbeitslose geeignete offene Stellen in Deutschland gibt, und dass grenzuberschreitendes Pendeln zur Losung des Problems beitragen kann. Obwohl das Potenzial grenzuberschreitender Arbeitsmarkte, die von Agglomerationswirtschaften profitieren, sicherlich in einigen Grenzregionen besteht, hat der tatsachliche Pendlerstrom in Wirklichkeit einen niedrigen und zeitlich konstanten Umfang. Daruber hinaus ist das Pendeln aus Deutschland um ein Vielfaches hoher als das Pendeln aus den Niederlanden, was darauf hindeutet, dass die Beschaftigungsmoglichkeiten fur Deutsche in den Niederlanden besser sind als umgekehrt. Wir fordern einen realistischeren Ansatz, der auf Fakten zu Problemen auf den regionalen Arbeitsmarkten, evidenzbasierter Bewertung der politischen Initiativen und gemeinsamen Masnahmen beider Lander und der Abstimmung (Dualitat) von Strategien im Ansatz basiert, um den potenziellen Nutzen vermehrter Interaktionen zwischen grenzuberschreitenden Arbeitsmarkten auszuschopfen.

Resilient Labour Markets and Demographic Change in Selected Regions of the Netherlands

Although the population of the Netherlands is increasing, the population growth rate, even if fluctuating considerably, has been declining since the 1960s. The age structure of the Netherlands since the 1960s has also experienced change, declining youth (under 20 years old), growth and then decline in the 20–40 year-old age cohort, a significant increase in the 40–65 age cohort, and gradual increases in the 65–80+ cohort. As a result of the changing demography, the workforce will be older and this will impact upon the labour market, increasing the number of older workers and reducing the number of new entrants. The case study of the Netherlands revealed the different responses to demographic challenges occurring within the selected regions; with each region (Groningen/Drenthe, Limburg and Zeeland) experiencing different issues associated with its socio-economic situation, localised population shrinkage, population ageing, migration, labour shortages and skill gaps.

Lokale onmacht rond de Participatiewet

De Participatiewet is het bestuurlijke antwoord op systeemfalen in de inrichting van de sociale zekerheid, padafhankelijke insluitingsmechanismen en gebrek aan operationele efficiency. De invoering zal leiden tot financiele beheersing, maar nauwelijks tot meer arbeidsparticipatie. Daarvoor is de decentralisering te ver doorgeschoten en veronachtzaamt het kabinet onderliggende economisch-geografische processen. Doordat gemeenten nauwelijks invloed hebben op de omvang van de werkgelegenheid reduceert het de participatieopgave tot een vraagstuk van verdeling van en concurrentie om schaarse banen. Om succesvol te kunnen zijn moet de regio weer serieus worden genomen en dat behelst meer dan het kabinet nu beoogt.