Part of this research has been financed by The Netherlands Institute of City Innovation Studies (NICIS) in The Hague, The Netherlands.
HAVE DUTCH MUNICIPALITIES BECOME MORE EFFICIENT IN MANAGING THE COSTS OF SOCIAL ASSISTANCE DEPENDENCY?*
Article first published online: 16 APR 2012
© 2012, Wiley Periodicals, Inc.
Journal of Regional Science
Volume 53, Issue 2, pages 274–291, May 2013
How to Cite
Broersma, L., Edzes, A. J.E. and van Dijk, J. (2013), HAVE DUTCH MUNICIPALITIES BECOME MORE EFFICIENT IN MANAGING THE COSTS OF SOCIAL ASSISTANCE DEPENDENCY?. Journal of Regional Science, 53: 274–291. doi: 10.1111/j.1467-9787.2012.00762.x
- Issue published online: 26 APR 2013
- Article first published online: 16 APR 2012
- Received: May 2010; revised: January 2012; accepted: January 2012.
ABSTRACT Many welfare reforms undertaken in Organization of Economic Cooperation and Development (OECD) countries are directed toward enhancing efficiency in the administration and implementation of social security. In this perspective, reforms in The Netherlands are an example of decentralization through budgeting financial means to municipalities. 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 applying a stochastic frontier analysis, we assess the impact of municipal policy strategies on cost inefficiency for the period 2005–2007. We find a clear positive effect of the WSA in 2004 on cost efficiency. Pursuing a strategy of activation raised efficiency significantly.