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The Dutch coalition agreement: stagnation or progress for women in the labor market?

06-08-2024

At first glance, the Dutch coalition agreement seems to indicate that ‘women’s emancipation’ is not among the top priorities of the new cabinet. While the right to abortion remains protected and measures against sexual misconduct are being strengthened, there are no proposals to close the gender pay gap or increase the number of women in top positions, even within the national government. Additionally, the joint call from more than thirty organizations for a National Strategy on Women’s Health has not been heeded. This sets a clear course, it seems.

But to what extent is this assumption based on confirmation bias? Does this assumption hold if we read between the lines?

A critical reader will see that the cabinet does present a number of promising measures. These measures—whether intentional or not, directly or indirectly—can positively impact the position of women, particularly in the labor market and thereby indirectly on their financial independence.

Untapped labor potential

The labor market tightness in the Netherlands had been simmering for several years and peaked in 2022, threatening business growth and the economy in general. Therefore, the previous cabinet wanted to increase labor force participation. The untapped labor potential had to be utilized, and it just so happens that this untapped potential is relatively high among women.

The current cabinet’s commitment to making work more rewarding and attractive is evident in its approach. This includes tax relief on work and a reduction in marginal tax rates. Additional measures are also being taken to address acute shortages in health care, where women are heavily overrepresented. These measures include greater autonomy and career prospects, better working conditions and reduction of administrative burdens.

Equal work-care distribution

To boost women’s participation in the labor market, efforts must not only focus on promoting paid work but also on achieving a more equal distribution of work and care responsibilities between men and women. Traditionally, unpaid care tasks, such as household chores and caring for children or other family members, are still more often performed by women.

The new cabinet recognizes this, as evidenced by the recently opened public consultation on a law aimed at making childcare almost free for working parents. Additionally, the cabinet intends to strengthen the position of informal caregivers—a role significantly more often taken on by women than men.

Need for flexibility

However, much remains unclear about how the cabinet plans to achieve these goals. When it comes to strengthening the position of informal caregivers, are we talking about more financial compensation or the freedom to arrange one’s own hours?

The latter does not align with the cabinet’s intention to limit labor market flexibility. The new coalition aims to proceed with the Act on clarification of employment relationships assessment and presumption of employment (Wet Vbar) to provide more security for freelancers. While this is a commendable goal, freelancers, intermediaries, and employers criticize that this would severely restrict the freedoms of freelancers—freedoms that make it possible for caregivers and young mothers to work (more).

The new Minister of Social Affairs and Employment (SZW) is currently awaiting advice from the Council of State and may still amend the proposal before sending it to the House of Representatives. All eyes are on the coalition agreement, where the cabinet is expected to provide more clarity on how it intends to optimally safeguard the interests of freelancers.

A broader approach

Although women’s emancipation does not appear to be a direct objective of the new cabinet’s policy, the coalition agreement does contain elements that could potentially contribute to a more inclusive labor market. This is a side benefit of the labor market shortage.

Nevertheless, the challenges remain significant, and more is needed to broadly stimulate women’s emancipation. The responsibility for this does not lie solely with the Minister of SZW. It is a shared responsibility, and we should expect targeted efforts from the Ministers of Health, the State Secretary for Emancipation, other cabinet members, and parliament.

"Although women's empowerment does not seem to be an immediate goal of the new cabinet policy, the outline agreement does contain elements that have the potential to contribute to a more inclusive labor market."

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