Mosselman, Kees; Muysken, Joan
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Melke jobs, a unique expe imen
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Melke Jobs, a unique expe imen
Kees Mosselman and Joan Muysken
Published 8 No embe 2024
Maas ich Economic and social Resea ch ins i u e on Inno a ion and Technology (UNU-MERIT)
email: in o@me i .unu.edu | websi e: h p://www.me i .unu.edu
Boschs aa 24, 6211 AX Maas ich , The Ne he lands
Tel: (31) (43) 388 44 00
UNU-MERIT Wo king Pape s
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Maas ich Economic and social Resea ch Ins i u e on Inno a ion and Technology
UNU-MERIT
UNU-MERIT Wo king Pape s in end o dissemina e p elimina y esul s o esea ch ca ied
ou a UNU-MERIT o s imula e discussion on he issues aised.
1
Melke Jobs, a unique expe imen
Kees Mosselmana
Joan Muyskenb
ABSTRACT:
Con a y o he s ill p e ailing belie in he Ne he lands ha he Melke job p ojec was a ailu e, we
a gue based on a poli ical-economic analysis ha he Melke job should be conside ed an inno a i e
and success ul p ojec . I ully acknowledged ha a la ge g oup o long- e m unemployed should no
be le in he lu ch by c ea ing basic jobs o his g oup, leading o imp o ed public se ices. The
Melke job as a basic job hus ep esen s a conc e e implemen a ion o he job gua an ee, which
cu en ly is inc easingly gaining in e es in Eu ope.
JEL codes: E65, J68, H53, N34
Key wo ds: Melke Jobs, public employmen , job gua an ee, basic income
a Senio Resea che and PhD candida e a Hanze Uni e si y o Applied Sciences. [email p o ec ed].nl
b Depa men o Economics, SBE, Maas ich Uni e si y; UNU-MERIT, Co FEE-Eu ope.
j.muysken@maas ich uni e si y.nl
2
3
1. In oduc ion
In he ea ly 1980s, a unique public sec o jobs p ojec was in oduced in he Ne he lands. This p ojec ,
which became known as 'Melke jobs', was named a e Ad Melke , he Minis e o Social A ai s who
in oduced i in 1994. This p ojec is pa icula ly in e es ing as i an icipa ed he ecen in e es in Job
Gua an ee p ojec s and expe imen s in Eu ope. Howe e , su p isingly li le has been published in he
in e na ional li e a u e abou he p ecise na u e o he p ojec and why i expi ed in he ea ly 2000s.
We a e in e es ed in a concise analysis, since we ad oca e he in oduc ion o basic jobs and he his o y
o Melke jobs migh p o ide impo an insigh s.
We ound a mo e e e ences o ‘Melke Jobs’ in publica ions han we expec ed, gi en he lack o a
comp ehensi e o e iew in he in e na ional li e a u e. Bu all hese e e ences a e in he con ex o
mo e gene al discussions. Fo ins ance, hey a e men ioned in o e iews o public sec o p og ams
(Rose, 1999; B odsky, 2000; Woline z, 2001; Aue , 2002) and in compa a i e su eys o he wel a e
s a e (Delsen and de Jong, 1998; Delsen and Jacobs, 1999; Nickel and an Ou s, 2000; Van Be kel and
de Schamphelei e, 2001; Hansen e al., 2002; de G aa and an Be kel, 2011). Addi ionally, signi ican
a en ion has been paid o he ole o Melke jobs in he de elopmen o he wel a e s a e (Heme ijck
and an Ke sbe gen, 1997; Visse and Heme ijck, 1997; an Oo scho , 2002; Heme ijck, 2003), also in
ela ion o he ‘ hi d way’ ( an de Veen and T ommel, 1999; Heme ijck and Vail, 2004; de Gie and
Ooijens, 2004; Alexiadou, 2013; Jü gens, 2019). Melke jobs a e also men ioned in ela ion o o he
aspec s o he wel a e s a e, such as inclusi e labo ma ke s (Klosse and Muysken, 2016), a i udes
owa ds unemploymen (Ho n e al., 2023), po e y (Snel and Ka yo is, 1998), wo k quali y (Ka asek,
1997, 2004), public se ices ne wo ks ( an Ges el, 2023), and empowe ing la ge ci ies (B aun e al.,
2016). Finally, in he discussion o pe sonal o job cha ac e is ics, Melke jobs a e men ioned in he
con ex o disc imina ion (Doome nik, 2016), he unde g ound economy (Williams, 2004), you h
unemploymen (Lowe, 2001; Meije s and e Riele, 2004), unde educa ion (Ba enbu g and de Wi e,
2001; K eme e al., 2021), po e y (Valkenbu g and Coenen, 2000), and disabili ies ( an Oo scho and
Boos, 1999).
Despi e all hese e e ences, he e is no comple e accoun o he his o y o he ‘Melke jobs’ and hei
down all. In his pape , we aim o ill his gap1. Fi s , we discuss he in oduc ion o Melke jobs in
1994, which we e implemen ed because o he p e alence o pe sis en long- e m unemploymen .
Then, we show how signi ican changes in he poli ical-economic clima e in he 1990s esul ed in he
phasing ou o Melke jobs om 2002 onwa ds. We subsequen ly demons a e ha he Melke jobs
expe imen was ac ually qui e success ul. The e o e, we ou line key lessons om he expe imen ha
should be conside ed when implemen ing job gua an ee and basic jobs. Finally, we a gue ha Basic
Income and he pa allel labo ma ke a e no sui able al e na i es o he basic job.
2. The ise and all o Melke Jobs
2.1 The In oduc ion o Melke Jobs
In he 1970s and 1980s, unemploymen in he Ne he lands was high, as i was in o he Wes e n
Eu opean coun ies. This was pa ly caused by se e al in e na ional oil c ises. A he peak o
unemploymen in la e 1982, he amous Wassenaa Ag eemen was eached be ween go e nmen ,
employe s' o ganiza ions and ade unions, wi h wage mode a ion in exchange o employmen as i s
main ou come.
1 Fo an ex ensi e epo in Du ch on he ise and all o Melke jobs, consul Mosselman and Muysken (WBS,
2020).
4
Unemploymen did decline in he ollowing yea s bu emained a a high le el wi h a lo o long- e m
unemploymen (Figu e 1). In 1990, o ackle long- e m unemploymen , he Pool Jobs Scheme (BP) was
in oduced, which can be seen as a p ecu so o he Melke jobs. Addi ionally, wi h a en-yea delay,
he You h Employmen Gua an ee Plan (JWG) was in oduced in 1992, a ge ing young people and
unemployed school lea e s.
Figu e 1 Figu e 2
Sou ce: Rappo age A beidsma k 1986; Sou ce: CPB 2018
Sociale No a 1997
A e a g adual decline in unemploymen in he second hal o he 1980s, he e was ano he ala ming
ise o nea ly 10% in 1994 (Figu e 2). Wi hin his de elopmen , he mos ulne able g oups in socie y
we e disp opo iona ely ha d hi . Addi ionally, he economic ou look was pa icula ly bleak acco ding
o explo a ions by he Cen al Planning Bu eau. In hese ala ming economic condi ions, he social-
democ a ic/libe al Kok I cabine ook o ice. Ad Melke , he social-democ a ic (P dA) Minis e o
Social A ai s and Employmen , e y soon p esen ed his (EwLw) employmen plan, he 'Regula ion o
addi ional employmen o he long- e m unemployed' (Melke , 1994). The main componen o his
plan was he decision o g adually c ea e a o al o 40,000 jobs in he collec i e sec o o he long-
e m unemployed and wel a e ecipien s du ing he cabine pe iod 1994-1998. The minis e aimed o
achie e a dual objec i e wi h his plan: (1) c ea ion o (ex a) egula , pe manen jobs in he public
sec o – no mal jobs o no mal people, as he minis e said – and (2) imp o emen o he quali y o
se ices in he public sec o 2. F om 1996 onwa ds, o his plan almos e e yone used he name
"Melke job".
2.2 Changes in he Poli ical-Economic Clima e and Consequences o Melke Jobs
While he in oduc ion o he Melke jobs du ing he cabine pe iod 1994 – 1998 p oceeded la gely
acco ding o plan, signi ican changes occu ed in he poli ical-economic clima e ( an den B ink, 2020;
Mellink and Oudenampsen, 2021). The economic iew on he unc ioning o he labo ma ke was
s ongly in luenced by he 'Jobs S udy' o he OECD in 1994. In his s udy on he causes o ising
unemploymen in he ea ly 1990s, he OECD based i s analysis on he iews o Laya d, Nickel, and
Jackman (1991), which a ibu ed unemploymen o obs acles in he labo ma ke , in line wi h he
concep o NAIRU. Go e nmen policy o educe unemploymen should, in his iew, ocus on
add essing hese obs acles and cu ailing social secu i y. I is clea ha he OECD was e y c i ical o
Melke jobs. This mo e neolibe al economic ision also pe mea ed he (pa y) poli ical ield, especially
among social democ a s in Wes e n Eu opean coun ies. As a esul o he ise o neolibe alism in he
2 Ano he pa o he (EwLw) employmen plan conce ned he p o ision o wage subsidies o up o 20,000 jobs
wi h a empo a y employmen o 6 mon hs o he bene i o expe imen al employmen p ojec s in he p i a e
sec o , o he same a ge g oup. This Scheme was included some yea s la e , oge he wi h he JWG and he
BP, in he Job Seeke s In ol emen Ac (WIW).
5
economic-poli ical deba e, hese pa ies adop ed he 'Thi d Way' as hei new di ec i e, which in ol ed
in The Ne he lands a 'de ini i e a ewell o socialis ideology' (Kok, 1995; Mellink and Oudenampsen,
2021).
When he Kok II cabine (1998-2002) ook o ice, socio-economic condi ions had g ea ly imp o ed. Due
o he shi ing poli ical-economic landscape, he e was mo e ocus on he ac i a ing e ec o social
secu i y a angemen s, and ewe ba ie s o he labo ma ke we e ad oca ed. En e ing he egula
labo ma ke , especially he ma ke sec o , became he new c edo. The o icial name o he job (EwLw
job) was changed o ID job (I = en y job, D = s ep-up job). The exis ing 40,000 jobs we e con e ed
in o 40,000 I-jobs, o be expanded du ing he cabine pe iod 1998-2002 wi h 10,000 I-jobs and 10,000
D-jobs (see Table 1). The D-jobs we e in ended o employees who had illed an I-job o 5 yea s
(Coali ion Ag eemen Kok II, 1998; Minis y o SZW, 1998).
Table 1 Jobs/Bene i Yea s (x 1000) o Va ious Schemes
Melke /ID
JWG
BP
1989
5
1990
7
4
1991
7
6
1992
6
16
1993
12
16
1994
16
20
1995
6
22
22
1996
24
23
23
1997
38
25
24
ID
WIW
1998
40
42
53
40
36
35
29
1999
45
2000
50
2001
55
2002
53
2003
46
WWB
2004
34 + 14
Sou ce: a ious edi ion o Sociale No a
The ID jobs we e in ended o be pe manen employmen posi ions, bu he s a ing was o be lexible.
This means ha all ID jobs we e gi en a s ep-up objec i e. This undamen ally de ia ed om he
o iginal se up o he EwLw job, namely an (ex a) egula , hus pe manen job wi hin he collec i e
sec o . The new emune a ion sys em was also ailo ed o s ep-up, wi h highe emune a ion o D-
jobs han o an I-job.
A ound he u n o he cen u y, unemploymen had d opped o abou 4% due o con inued economic
g ow h, and as a esul , inc easing c i icism eme ged on he ac i e and, acco ding o many, expensi e
labo ma ke policy. In esponse, he Minis e o SZW es ablished an In e depa men al Policy
Resea ch and Consul a ion g oup (IBO) o in es iga e he e iciency and e ec i eness o he exis ing
labo ma ke ins umen s. The indings o his in es iga ion, he IBO epo “Aan de Slag” (IBO, 2001),
we e in line wi h he p e ailing iew on he unc ioning o he labo ma ke and he e ea ing ole o
go e nmen . The epo was widely suppo ed by social o ganiza ions, e en by he allied ade union
mo emen , o he disappoin men o he P dA minis e s. A ew mon hs a e he IBO epo , he Social
and Economic Council unanimously ad ised o phase ou subsidized employmen in he long e m (SER,
2002). This essen ially sealed he poli ical a e o he Melke /ID job.
6
2.3 Phasing Ou he Melke /ID Jobs
A e he elec ions o May 2002, in which he social democ a s (P dA) su e ed a majo de ea , a
cen e - igh cabine (Balkenende I) ook o ice. F om he ou se , i was clea ha he Melke /ID
scheme would be phased ou . This phase-ou was ini ia ed by he hen-libe al S a e Sec e a y o Social
A ai s and Employmen , he u u e Du ch P ime Minis e Ma k Ru e, wi h a ‘double decision’. Fi s ,
i was decided o ans e he a ailable ID unds o he municipali ies o he eely disposable
ein eg a ion budge . Second his was accompanied by a signi ican budge cu o 25%, and u he
educ ions we e announced (Ru e, 2002).
The municipali ies hus became esponsible o e aining o phasing ou he ID jobs. They we e aced
wi h u he cu s o he ein eg a ion budge s and inc easingly op ed o use hese (limi ed) unds o
suppo i e and media ing ein eg a ion ac i i ies, a he han o ID jobs (Balkenende I, 2002). The
g adual phase-ou o he ID jobs was hus ine i able and inal (see Table 1).
2.4 Why Melke Jobs We e a Success
Fi s , we wan o emphasize ha Melke jobs in he 1990s, and s ill oday, e oke s ong emo ions in
deba es, wi h many people ha ing he imp ession ha i was a ailed expe imen . This is ema kable
because, s ic ly speaking, he ac ual scope o he Melke p ojec , bo h in e ms o he cos sha e o
ac i e labo ma ke policies and as a pe cen age o o al unemploymen , was ela i ely small (Figu e
3)3. Ou analysis is ha du ing his pe iod, he e was a e y apid change in he poli ical-economic
amewo k – e lec ed in opinions held by he media and he public – leading o signi ican poli ical
and ideological disag eemen s.4
Figu e 3
Sou ce: CPB 2018 and Table 1.
3 The unemploymen sha e a ied be ween 10% and 20%. The cos s we e a mos 30% o he o al cos s o ac i e
labou ma ke policy – hese o al cos s cons i u ed a mos 0.8% o GDP.
4 The change in opinion is illus a ed by he big di e ence be ween he 1994 ecommenda ion o he And iessen
Commission (Commissie Laags e segmen an de a beidsma k , 1994) o c ea e 100,000 ‘addi ional jobs’
(Melke jobs ‘a an la le e’) on he one hand and he 2001 IBO ecommenda ion discussed abo e o abolish
addi ional pe manen jobs/Melke jobs and ocus om now on ein eg a ion on he o he . See also Van den
B ink (2020).
13
The Melke job emains a shining example o ac i e labo ma ke policy aimed a employmen o
e e yone, despi e i s sho comings e ealed du ing i s p epa a ion and implemen a ion. I he Melke
app oach had been con inued a e 2002 unde la e cabine s – o cou se, wi h imp o emen s and
adjus men s based on he e alua ion o expe iences, as indica ed by us – we can asse wi hou
hesi a ion ha long- e m unemploymen and unde u iliza ion o labo a he lowe end o he labo
ma ke would be subs an ially lowe han i is oday. In ha espec , we also ha e b oadened he
o iginal concep o he Job Gua an ee, i.e., he p e en ion and ackling o cyclical unemploymen , wi h
he p e en ion/ ackling o ha d-co e unemploymen .
We discussed he ou key lessons ha can be d awn om he Melke jobs expe imen . These a e
impo an o de eloping ( u u e) p oposals o he in oduc ion o basic jobs and o he design and
implemen a ion o he Job Gua an ee-like expe imen s ecen ly and cu en ly s a ing in se e al EU
coun ies.
In his ega d, we ou lined he signi ican ole o go e nmen . O e ing basic jobs is by de ini ion he
ask o go e nmen based on legisla ion and poli ical decisions. Unde ce ain condi ions should
secondmen o basic job holde s o social en e p ises and he p i a e sec o be possible.
In line wi h ou b oadening o he Job Gua an ee concep , go e nmen should p o ide bo h empo a y
and pe manen basic jobs, impo an p inciples o he emune a ion o basic jobs apply he e. Special
a en ion mus be gi en o p e en ing implemen a ion p oblems. This is pa icula ly ele an o he
assignmen o basic jobs and he supe ision o long- e m unemployed wi h a basic job. Fu he mo e,
we ad oca e a long- e m app oach and a phased, g adual in oduc ion o he job gua an ee o
e e yone.
We u he a gued ha bo h he concep o an uncondi ional, uni e sal basic income a he le el o
he minimum wage and he concep o he pa allel labo ma ke should no be conside ed sensible
al e na i es o he job gua an ee.
We conclude wi h a b ie no e on he inancing o he job gua an ee o e e yone. The ew s udies
conduc ed on his subjec indica e ema kably low cos s (SEO, 2020 and Tche ne a, 2020). The main
eason o his is ha wi h a job gua an ee, p e iously unused ea ning capaci y is now u ilized, and
o me bene i s and adminis a i e cos s a e sa ed. Addi ionally, he posi i e social e ec s o wo k on
quali y o li e, heal h, and heal hca e cos s ha e no ye been accoun ed o .
Go e nmen in es men in unused labo capaci y, educa ion, and li elong lea ning is a aluable, e en
necessa y in es men in he u u e o socie y. This is also an impo an lesson om he Melke jobs
expe imen .
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