New social assistance act: the first results.
Instead of claiming all welfare expenses directly from the central government, nowadays local governments get a fixed budget to cover all welfare expenses. The idea is that this will lead to a more efficient implementation of the welfare case load.
Based on data on municipalities (welfare case loads, entries and exits) covering the period 2001-2004, the changes in funding of municipalities have been analysed. Other variables that might have affected the welfare case load, such as economic developments, demographic changes and differences in starting points from different municipalities, are also taken into account in the analysis. Estimation results show that the introduction of the new law has caused around 2 percent lower increase in the number of welfare benefits. The increase is approximately 8 000 benefits lower. The results indicate that introduction of the WWB has led to less entries into welfare and more exits out of welfare.
This publication is in Dutch.