Have Dutch Municipalities Become More Efficient in Managing the Costs of Social Assistance Dependency?*

Abstract

Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Abstract** 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. Terms of use: Documents in

Economic Decline and Social Security Benefits in the Netherlands

“…Broersma et al . () conclude that the overall efficiency in delivering social security benefits in the Netherlands is already very high, and that there is almost no room for further efficiency improvements at the local level.…”

“…The present Dutch social security policies (WWB) were introduced in 2004, together with a full decentralisation of (financial) responsibility from central government to municipalities (Broersma et al . ). Local governments now receive a fixed budget to cover all social security payments.…”

Lokale onmacht rond de Participatiewet

“…Landelijke reintegratieregelingen zijn daarom verregaand en succesvol gedereguleerd. Zo heeft de Wet werk en bijstand (Wwb) van 2004 ertoe geleid dat de kostenbeheersing van gemeenten aanmerkelijk is verhoogd (Broersma et al, 2013;Van Es, 2010;Kok et al, 2007;Stegeman & Van Vuren, 2006). Wanneer gemeenten zelf financieel verantwoordelijk zijn letten ze beter op handhaving van rechten en plichten en de inzet van instrumenten.…”

An Analysis of the Efficiency of Local Government Expenditure and the Minimum Efficient Scale in Vietnam

“…Wang and Tao (2019) [17] measured the efficiency of local government health expenditure in each region of China from 2007 to 2016. Using DEA and SFM, Broersma, Edzes and van Dijk (2013) [18] assessed the effect of the introduction of the "new work and social assistance act" in 2004 on cost efficiency and assessed the impact of municipal policy strategies on cost inefficiency during the period of 2005 to 2007. Beidas-Strom (2017) [19] estimated the efficiency of public sector service in England at the sub-regional level between 2010 and 2014.…”