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Making Transitions Pay: An Assessment of the Dutch Life-Course Scheme

Published online by Cambridge University Press:  25 June 2009

THOMAS VAN HUIZEN  and
JANNEKE PLANTENGA
THOMAS VAN HUIZEN
Affiliation:
Utrecht University School of Economics, 3512 BL Utrecht, The Netherlands email: [email protected]; [email protected]
JANNEKE PLANTENGA
Affiliation:
Utrecht University School of Economics, 3512 BL Utrecht, The Netherlands email: [email protected]; [email protected]
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Abstract

Introducing individual savings accounts into the system of social security may be an innovative way to reorganise European social security systems. This article examines the merits and drawbacks of this modernisation strategy using the Transitional Labour Market approach as a frame of reference. On the basis of normative criteria derived from this approach, we perform an evaluation of the Dutch life-course scheme (‘Levensloopregeling’). This scheme is a unique and pioneering arrangement that offers employees a fiscally facilitated option to save money to finance periods of unpaid leave. Following the assessment of the Dutch case, we identify several pitfalls of reforms based on individual savings accounts. Finally, we put forward some proposals to overcome these shortcomings.

Type
Article
Information
Journal of Social Policy , Volume 39 , Issue 1 , January 2010 , pp. 35 - 52
Copyright
Copyright © Cambridge University Press 2009

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