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Modern welfare states are confronted with a wide variety of social and economic developments, including individualization, secularization, globalization and changing preferences and ideologies of citizens. Using in-depth analysis gathered over 15 years, this book closely analyzes the consequences of these significant changes for social policies, offering theoretical and practical insights about their responsiveness. It includes a comparative analysis of recent developments in social assistance, sheltered work and labour market policies in the Netherlands, showing how policy-makers are continuously trying to incorporate societal transformations into social policies while they are obstructed by the path-dependent development of welfare state institutions. The insights from the case studies are related to developments in other European countries in the three domains and show how policy-makers and politicians deal with multiple challenges, interests and perspectives on social policies. This book is essential reading for academics and students interested in the institutional development of social policies.