Abstract
Critically examines the 1993‐reform in the Disablement Act for employees in The Netherlands. Demonstrates that the new measures, which are mainly directed at lowering the benefit and at limiting the duration, are not as effective in reducing expenditures in this field as they were meant to be. In addition, by means of a simulation model shows that almost the same degree of savings can be achieved by a different type of policy, namely prevention policy, without lowering the benefit and limiting the duration of it. Examines the conditions for a successful prevention policy. Finally, discusses the social security changes in The Netherlands within a European socio‐economic perspective.
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