The Dutch Welfare State: Recent Trends and Challenges in Historical Perspective
| Published date | 01 March 2006 |
| Author | Wim van Oorschot |
| Date | 01 March 2006 |
| DOI | 10.1177/138826270600800104 |
| Subject Matter | Article |
THE DUTCH WELFARE STATE:
RECENT TRENDS AND CHALLENGES
IN HISTORICAL PERSPECTIVE
WIM VAN OORSCHOT*
Abstract
This article critically describes and discusses a fundamental shift in the contents and
character of the Dutch welfare state from a model of collective solidarity towards one of
personal responsibility. It starts with a brief historical sketch of the main lines along
which the Dutch welfare state has developed, and ends with a view of its future
challenges. Comparative statistics are used to sketch the most recent developments in
Dutch welfare expenditures, the actual welfare system is characterised, and recent
changes are presented and evaluated in more detail. It shows that in The Netherlands,
from the 1980s onwards, welfare retrenchment and restructuring are not merely
rhetorical concepts. On the contrary, the picture that emerges is that of an incremental,
but systematic and steady process of continuous reform.
1. INTRODUCTION
From a European comparative perspective the Dutch welfare state is usually regarded
as a ‘hybrid’ type, in between Esping-Andersen’s regime types of corporatism and
social-democracy (Arts and Gelissen 2002). Although Esping-Andersen himself
classified the Dutch welfare state as ‘corporatist’, mainly because of the way in which it
was built up along corporatist lines (Esping-Andersen 1990), others are of the opinion
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European Journal of Social Security, Volume 8 (2006), No. 1 57
* Wim van Oorschot is Professor of Sociology and Head of the Department of Social and Cultural
Sciences at Tilburg University. Address: PO Box 90153, 5000 LE Tilburg, The Netherlands; e-mail:
w.v.oorschot@uvt.nl. He is also an Honorary Professor in the Centre for Comparative Welfare
Studies at Aalborg University, Denmark.
58 Intersentia
that, institutionally, the Dutch welfare state comes closer to the ‘social-democratic’
type, because its social security system contains not only Bismarckian-type social
insurance for workers, but also universal ‘people’s insurances’ that cover all citizens,
and because its insurance and assistance benefits are comprehensive and relatively
generous (Goodin and Smitsman 2000). In our view, the hybrid character of the Dutc h
welfare state has increased even further in the past two decades (see also Clasen and
van Oorschot 2002), with the substantial introduction of liberal elements. That is, the
character and contents of social support and social protection arrangements have
changed, showing a principled shift from a system based on collective solidarity
towards one predominantly based on individual responsibility. In the process, the
degree of social spending has decreased significantly.
This article critically describes and discusses this shift. It starts with a brief
historical sketch of the main lines along which the Dutch welfare state has developed,
and it ends with a discussion of its future challenges. Comparative statistics are used to
sketch the most recent developments in Dutch welfare expenditures, the welfare
system is characterised, and its recent adaptations are presented and evaluated in more
detail. It shows that in the Netherlands, from the 1980s onwards, welfare retrenchment
and restructuring are not merely rhetorical concepts. On the contrary, the picture that
emerges is that of an incremental, but systematic and steady process of continuous
reform, in reaction to various challenges brought about by economic, demographic,
social and cultural factors.
2. THE DEVELOPMENT OF THE DUTCH WELFARE STATE
IN HISTORICAL PERSPECTIVE
The start of the modern Dutch welfare state is usually given as 1874, with the
implementation of a law forbidding labour by children under 12 years of age
(‘Kinderwetje van Van Houten’). National surveys at the end of the 19th century had
shown the full extent of the dire situation of large parts of the population. The ‘social
question’ concerning large-scale poverty and misery among the working population
was much debated in parliament, but it was not until 1901 that the first social
insurance scheme, the law on work injury benefits, was introduced. After this first step
and up until the Second World War, further national schemes were introduced,
covering invalidity, old age and sickness. As was typical for that time, the idea was that
government should intervene as little as possible. Instead of tax-based national
schemes (such as an old age pension for all), a programme of mandatory, contributory
social insurance was introduced. In the pre-war period all schemes were confined to
waged workers, based on the principle of the ‘just wage’, which legitimised insurance
contributions as part of the normal wage-cost. The pre-war schemes were organised at
the level of individual (large) companies or separate sectors of industry, as a result of
Wim van Oorschot
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