The Impact of Social Investment Reforms on Income and Activation in the Netherlands

In this chapter we assess the buffer and flow dimension of the social investment state for early school leavers and lone parents in the Netherlands. By applying an ‘at-risk household-type model’, we show that the buffer function of the welfare state for the two risk groups out of work has declined in the last decade, particularly for early school leavers. On the other hand, the buffer function, in terms of minimum income protection, for those risk groups that have acquired paid employment has significantly improved. In terms of labour-market flow, we show that capacitation of risk groups is an explicit aim of service delivery at the local level in the Netherlands. On the other hand, capacitation was brought in jeopardy by recent budget, which undermined the flow function for precarious risk groups. Both the buffer and flow function of the Dutch social investment state point to an ambivalent reform path.