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Effects of contracting out employment services: Evidence from a randomized experiment
Uppsala University, Units outside the University, Office of Labour Market Policy Evaluation.
Uppsala University, Disciplinary Domain of Humanities and Social Sciences, Faculty of Social Sciences, Department of Economics.
Uppsala University, Units outside the University, Office of Labour Market Policy Evaluation.
2012 (English)Report (Other academic)
Abstract [en]

In many countries welfare services that traditionally have been provided by the public sector are being contracted out to private providers. But are private contractors better at providing these services? We use a randomized experiment to empirically assess the effectiveness of contracting out employment services to private placement agencies. Our results show that unemployed at private placement agencies have a closer interaction with their case worker than unemployed at the Public Employment Service (PES); e.g., they receive more assistance in improving their job search technology. We do not find any overall difference in the chances of finding employment between private placement agencies and the PES, but this hides important heterogeneities across different types of unemployed. In particular, private providers are better at providing employment services to immigrants, whereas they may be worse for adolescents. Any effects tend to fade away over time.

Place, publisher, year, edition, pages
Uppsala, 2012. , 55 p.
Working paper / Department of Economics, Uppsala University (Online), ISSN 1653-6975 ; 2012:19
Keyword [en]
Job placement, Contracting out, Randomized experiment
National Category
Research subject
URN: urn:nbn:se:uu:diva-209305OAI: oai:DiVA.org:uu-209305DiVA: diva2:656647
Available from: 2013-10-16 Created: 2013-10-16 Last updated: 2013-10-17Bibliographically approved

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Bennmarker, HelgeGrönqvist, Erik
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Office of Labour Market Policy EvaluationDepartment of Economics

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