Skip to main content
Log in

The Politics of Welfare State Reform in the Netherlands: Explaining a Never-Ending Puzzle

  • Published:
Acta Politica Aims and scope Submit manuscript

Abstract

The Dutch welfare state has always posed analytical and empirical puzzles, since existing theories cannot adequately explain the characteristic features of its welfare regime (especially its paternalism and generosity). We discuss two interconnected puzzles about Dutch welfare state development and propose solutions. First, we show that the Dutch exceptionalism is partly an artefact of mainstream typologies that confuse ideal and real types. We resolve this problem and characterize the Dutch welfare state as a very generous welfare system with strong but decreasing paternalist features. This is important because one can expect that reform, especially of generosity, involves a high potential for electoral backlash. Empirically, we observe that some Dutch coalition governments were very reluctant reformers, while others confronted the voters head-on in their attempts to restructure the welfare state's generosity. How to explain this puzzle? We propose an approach to risky welfare state reform that is rooted in prospect theory and that can explain the cross-government variation in reform.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Figure 1

Similar content being viewed by others

Notes

  1. This section partly draws on Van Kersbergen and Vis (2006) and Vis (2008).

  2. Note that the socioeconomic situation was fairly good. The level of economic growth increased during the cabinet period and the level of unemployment was stable at 4.7%.

References

  • Allan, J.P. and Scruggs, L.A. (2004) ‘Political partisanship and welfare state reform in advanced industrial democracies’, American Journal of Political Science 48 (3): 496–512.

    Article  Google Scholar 

  • Andeweg, R.B. and Irwin, G.A. (2005) Governance and Politics of the Netherlands, 2nd edn, Houndsmills: Macmillan.

    Google Scholar 

  • Armingeon, K., Leimgruber, P., Beyeler, M. and Menegale, S. (2006) Comparative Political Data Set 1960–2004, Institute of Political Science, Bern: University of Bern.

    Google Scholar 

  • Becker, U. (2000) ‘Welfare state development and employment in the Netherlands in comparative perspective’, Journal of European Social Policy 10 (3): 219–239.

    Google Scholar 

  • Becker, U. (2005) ‘An example of competitive corporatism? The Dutch political economy 1983–2004 in critical examination’, Journal of European Public Policy 12 (6): 1078–1102.

    Article  Google Scholar 

  • Bertelsmann-foundation (various years) International Reform Monitor, Gütersloh: Bertelsmann Foundation Publishers.

  • Boettcher, W.A. (2004) ‘The prospects for prospect theory: an empirical evaluation of international relations applications of framing and loss aversion’, Political Psychology 25 (3): 33–362.

    Article  Google Scholar 

  • Bonoli, G. (2001) ‘Political Institutions, Veto Points, and the Process of Welfare State Adaptation’, in P. Pierson (ed.) The New Politics of the Welfare State, Oxford: Oxford University Press, pp. 238–264.

    Chapter  Google Scholar 

  • Brooks, P. and Zank, H. (2005) ‘Loss averse behavior’, The Journal of Risk and Uncertainty 31 (3): 301–325.

    Article  Google Scholar 

  • Cantillon, B., Marx, I. and van den Bosch, K. (2004) ‘Welfare State Protection, Labour Markets and Poverty: Lessons from Cross-Country Comparisons’, in G. Standing (ed.) Minimum Income Schemes in Europe, Geneva: ILO, pp. 11–27.

    Google Scholar 

  • Cox, R.H. (2001) ‘The social construction of an imperative: why welfare state reform happened in Denmark and the Netherlands but not in Germany’, World Politics 53 (3): 463–498.

    Article  Google Scholar 

  • Delsen, L. (2002) Exit Polder Model? Socioeconomic Changes in the Netherlands, Westport: Praeger.

    Google Scholar 

  • De Gier, E. and Ooijens, M. (2004) Dutch Welfare State Reforms: From a Passive to an Active Welfare State?, s-Gravenhage: Ministerie van Sociale Zaken en Werkgelegenheid, (Werkdocumenten 321).

    Google Scholar 

  • De Vries, J. (2002) Paars en de Managementstaat: Het Eerste Kabinet-Kok (1994–1998), Leuven, Apeldoorn: Garant.

    Google Scholar 

  • Di Mauro, C. and Maffioletti, A. (2004) ‘Attitudes to risk and attitudes to uncertainty: experimental evidence’, Applied Economics 36: 357–372.

    Article  Google Scholar 

  • Dogan, M. and Pelassy, D. (1990) How to Compare Nations: Strategies in Comparative Politics, Chatham: Chatham House.

    Google Scholar 

  • Esping-Andersen, G. (1990) The Three Worlds of Welfare Capitalism, Cambridge: Polity Press.

    Google Scholar 

  • Esping-Andersen, G. (ed.) (1996) Welfare States in Transition: National Adaptations in Global Economies, London: Sage.

    Google Scholar 

  • Esping-Andersen, G. (1999) Social Foundations of Postindustrial Economies, Oxford: Oxford University Press.

    Book  Google Scholar 

  • Ferrera, M. (1996) ‘The Southern model of welfare in Social Europe’, Journal of European Social Policy 6 (1): 17–37.

    Article  Google Scholar 

  • Green-Pedersen, C. (2001) ‘The puzzle of Dutch welfare state retrenchment’, West European Politics 24 (3): 135–150.

    Article  Google Scholar 

  • Green-Pedersen, C. (2002) The Politics of Justification: Party Competition and Welfare-State Retrenchment in Denmark and the Netherlands from 1982 to 1998, Amsterdam: Amsterdam University Press.

    Book  Google Scholar 

  • Hemerijck, A. and van Kersbergen, K. (1997) ‘A miraculous model? Explaining the new politics of the welfare state in the Netherlands’, Acta Politica 32 (3): 258–281.

    Google Scholar 

  • Huber, E. and Stephens, J.D. (2001) Development and Crisis of the Welfare State: Parties and Policies in Global Markets, Chicago: The University of Chicago Press.

    Book  Google Scholar 

  • Irwin, G.A. and van Holsteyn, J.J.M. (2004) ‘The 2002 and 2003 parliamentary elections in The Netherlands’, Electoral Studies 23 (3): 545–571.

    Article  Google Scholar 

  • ISSA (2006) Social Security Worldwide/ISSA Development and Trends Database: International Social Security Association. (http://www-ssw.issa.int/sswlp2/engl/page1.htm).

  • Iversen, T. (2001) ‘The Dynamics of Welfare State Expansion: Trade Openness, De-industrialization, and Partisan Politics’, in P. Pierson (ed.) The New Politics of the Welfare State, Oxford: Oxford University Press, pp. 45–79.

    Chapter  Google Scholar 

  • Iversen, T. (2005) Capitalism, Democracy, and Welfare, Cambridge: Cambridge University Press.

    Book  Google Scholar 

  • Iversen, T. and Wren, A. (1998) ‘Equality, employment, and budgetary restraint: the trilemma of the service economy’, World Politics 50 (4): 507–546.

    Article  Google Scholar 

  • Kahneman, D., Knetsch, J.L. and Thaler, R.H. (1991) ‘Anomalies: the endowment effect, loss aversion, and status quo bias’, Journal of Economic Perspectives 5 (1): 193–206.

    Article  Google Scholar 

  • Kahneman, D. and Tversky, A. (1979) ‘Prospect theory: an analysis of decision under risk’, Econometrica 47 (2): 263–291.

    Article  Google Scholar 

  • Kahneman, D. and Tversky, A. (eds.) (2000) Choices, Values, and Frames, Cambridge: Cambridge University Press.

    Google Scholar 

  • Kitschelt, H. (2001) ‘Partisan Competition and Welfare State Retrenchment. When do Politicians Choose Unpopular Policies?’, in P. Pierson (ed.) The New Politics of the Welfare State, Oxford: Oxford University Press, pp. 265–302.

    Chapter  Google Scholar 

  • Klitgaard, M.B. (2007) ‘Why are they doing it? Social democracy and market-oriented welfare state reforms’, West European Politics 30 (1): 172–194.

    Article  Google Scholar 

  • Korpi, W. and Palme, J. (2003) ‘New politics and class politics in the context of austerity and globalization: welfare state regress in 18 countries, 1975–95’, American Political Science Review 97 (3): 425–446.

    Article  Google Scholar 

  • Kuipers, S.L. (2006) The Crisis Imperative: Crisis Rhetoric and Welfare State Reform in Belgium and the Netherlands in the Early 1990s, Amsterdam: Amsterdam University Press.

    Google Scholar 

  • Leibfried, S. (1993) ‘Towards a European Welfare State?’, in C. Jones (ed.) New Perspectives on the Welfare State in Europe, London: Sage, pp. 133–156.

    Google Scholar 

  • Lewis-Beck, M.S. and Paldam, M. (2000) ‘Economic voting: an introduction’, Electoral Studies 19 (2): 113–121.

    Article  Google Scholar 

  • Lieberman, R.C. (2002) ‘Ideas, institutions, and political order: explaining political change’, American Political Science Review 96 (4): 697–712.

    Article  Google Scholar 

  • LIS (2002) Luxembourg Income Study. ( http://www.lisproject.org).

  • Marx, I. (2007) ‘The Dutch “Miracle” revisited: the impact of employment growth on poverty’, Journal of Social Policy 36 (3): 383–397.

    Article  Google Scholar 

  • McDermott, R. (2004) ‘Prospect theory in political science: gains and losses from the first decade’, Political Psychology 25 (2): 289–312.

    Article  Google Scholar 

  • Mercer, J. (2005) ‘Prospect theory and political science’, Annual Review Political Science 8: 1–21.

    Article  Google Scholar 

  • OECD (1999) Employment Outlook, Paris: OECD.

  • OECD (2004) Employment Outlook, Paris: OECD.

  • OECD (2006) Economic Outlook, Paris: OECD.

  • Peters, B.G., Pierre, J. and King, D.S. (2005) ‘The politics of path dependency: political conflict in historical institutionalism’, Journal of Politics 67 (4): 1275–1300.

    Article  Google Scholar 

  • Pierson, P. (1994) Dismantling the Welfare State? Reagan, Thatcher, and the Politics of Retrenchment, Cambridge: Cambridge University Press.

    Book  Google Scholar 

  • Pierson, P. (1996) ‘The new politics of the welfare state’, World Politics 48 (2): 143–179.

    Article  Google Scholar 

  • Pierson, P. (2001) ‘Coping with Permanent Austerity: Welfare State Restructuring in Affluent Democracies’, in P. Pierson (ed.) The New Politics of the Welfare State, Oxford: Oxford University Press, pp. 410–456.

    Chapter  Google Scholar 

  • Ross, F. (1997) ‘Cutting public expenditures in advanced industrial democracies: the importance of avoiding blame’, Governance: An International Journal of Policy and Administration 10 (2): 175–200.

    Article  Google Scholar 

  • Ross, F. (2000) ‘“Beyond left and right”: the new partisan politics of welfare’, Governance 13 (2): 155–183.

    Article  Google Scholar 

  • Scarbrough, E. (2000) ‘West European welfare states: the old politics of retrenchment’, European Journal of Political Research 38 (2): 225–259.

    Google Scholar 

  • Schmidt, V.A. (2002) ‘Does discourse matter in the politics of welfare state adjustment?’ Comparative Political Studies 35 (2): 168–193.

    Article  Google Scholar 

  • Scruggs, L.A. (2004) Welfare State Entitlement Data Set: A Comparative Institutional Analysis of Eighteen Welfare States, version 1.1.

  • Scruggs, L. and Allan, J.P. (2006) ‘The material consequences of welfare states: benefit generosity and absolute poverty in 16 OECD countries’, Comparative Political Studies 39 (7): 880–904.

    Article  Google Scholar 

  • Starke, P. (2006) ‘The politics of welfare state retrenchment: a literature review’, Social Policy & Administration 40 (1): 104–120.

    Article  Google Scholar 

  • Stiller, S. (2007) ‘Innovative agents versus immovable objects: the role of ideational leadership in German welfare state reforms’, Ph.D. Dissertation, Radboud University Nijmegen.

  • Swank, D. (2001) ‘Political Institutions and Welfare State Restructuring: The Impact of Institutions on Social Policy Change in Developed Democracies’, in P. Pierson (ed.) The New Politics of the Welfare State, Oxford: Oxford University Press, pp. 197–237.

    Chapter  Google Scholar 

  • Tversky, A. and Kahneman, D. (1981) ‘The framing of decision and the psychology of choice’, Science 211 (January): 453–458.

    Article  Google Scholar 

  • UWV (Uitvoeringsinstituut Werknemersverzekeringen) (2005) Kroniek van de sociale verzekeringen 2005: Wetgeving en Volumeontwikkeling in Historisch Perspectief, Amsterdam: UWV.

  • Van Gerven, M. (2006) ‘The winners and losers of the unemployment insurance restructuring in Britain, The Netherlands, and Finland’, paper presented at the ESPAnet Young Researchers' Workshop ‘Welfare State Institutions and Outcomes’. Stockholm, Sweden, 5–6 May.

  • Van Kersbergen, K. (2006) ‘The politics of solidarity and the changing boundaries of the welfare state’, European Political Science 5 (4): 377–393.

    Article  Google Scholar 

  • Van Kersbergen, K. (2008) ‘Religion and the Welfare State in the Netherlands’, in K. Van Kersbergen and Philip Manow (eds.) Religion, Class Coalitions and Welfare State Regimes, Cambridge: Cambridge University Press, (forthcoming).

    Google Scholar 

  • Van Kersbergen, K. and Becker, U. (2003) ‘The Netherlands: A Passive Social Democratic Welfare State in a Christian Democratic Ruled Society’, in J.T.S. Madely (ed.) Religion and Politics, Dartmouth: Ashgate, pp. 551–574.

    Google Scholar 

  • Van Kersbergen, K. and Vis, B. (2006) ‘Staat, Macht en Sociale Politiek: De Opbouw, Groei en Hervorming van de Nederlandse Welvaartsstaat’, in U. Becker and P. van Praag (eds.) Politicologie: Basisthema's & Nederlandse Politiek, Amsterdam: Het Spinhuis, pp. 296–321.

    Google Scholar 

  • Vis, B. (2008) ‘Biting the bullet or steering clear? Politics of (not-) unpopular welfare state reform in advanced capitalist democracies’, Ph.D. Dissertation, Faculty of Social Sciences, Vrije Universiteit Amsterdam.

  • Vis, B. and Van Kersbergen, K. (2007) ‘Why and how do political actors pursue risky reforms?’ Journal of Theoretical Politics 19 (2): 153–172.

    Article  Google Scholar 

  • Visser, J. and Hemerijck, A. (1997) A Dutch Miracle: Job Growth, Welfare Reform, and Corporatism in the Netherlands, Amsterdam: Amsterdam University Press.

    Book  Google Scholar 

  • Weaver, R.K. (1986) ‘The politics of blame avoidance’, Journal of Public Policy 6 (4): 371–398.

    Article  Google Scholar 

  • Weyland, K. (2002) The Politics of Market Reform in Fragile Democracies: Argentina, Brazil, Peru, and Venezuela, Princeton, New York: Princeton University Press.

    Google Scholar 

  • Woldendorp, J., Keman, H. and Budge, I. (2000) Party Government in 48 Democracies (1945–1998): Composition, Duration, Personnel, Dordrecht, Boston, London: Kluwer Academic Publishers.

    Book  Google Scholar 

Download references

Acknowledgements

We would like to thank Hans Keman and an anonymous referee for their helpful comments. Kees van Kersbergen wishes to thank the University of Konstanz Centre of Excellence ‘Cultural Foundations of Integration’ and especially their Institute for Advanced Study, for their generous hospitality and support.

Author information

Authors and Affiliations

Authors

Rights and permissions

Reprints and permissions

About this article

Cite this article

Vis, B., van Kersbergen, K. & Becker, U. The Politics of Welfare State Reform in the Netherlands: Explaining a Never-Ending Puzzle. Acta Polit 43, 333–356 (2008). https://doi.org/10.1057/ap.2008.11

Download citation

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1057/ap.2008.11

Keywords

Navigation