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Decentralisation of Active Labour Market Policy: The Case of Swedish Local Employment Service Committees

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Author Info
Lundin, M.
Skedinger, P.

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Abstract

Decentralisation of decision-making in active labour market policy makes it possible to use local information to the fullest, but may also impinge on the fulfilment of national objectives, as suggested by principal-agent theory. The purpose of this study is to examine the effects of a Swedish pilot programme in 1996, which strengthened the role of the local authorities in labour market policy in parts of the country. Survey evidence suggests a non-negligible divergence between the objectives of the municipality representatives and the central government's goals. Regarding programme eff ects, our econometric findings do not indicate any increase in geographical lock-in of the unemployed, but decentralisation seems to spur local initiatives in the form of labour market programmes organised by the municipalities. In addition, targeting on outsiders is to some extent more common in municipal projects than in others.

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Publisher Info
Paper provided by Research Institute of Industrial Economics (IFN) in its series Research Institute of Industrial Economics Working Papers with number 537.

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Length: 39 pages
Date of creation: 2000
Date of revision:
Handle: RePEc:fth:iniesr:537

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Postal: Research Institute of Industrial Economics (IFN) ; B.O. Box 55665, SE-102 15 Stockholm, Sweden
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Related research
Keywords: LABOUR MARKET ; DECENTRALIZATION ; GOVERNMENT;

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Find related papers by JEL classification:
J6 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies
H7 - Public Economics - - State and Local Government; Intergovernmental Relations

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

  1. Calmfors, Lars & Skedinger, Per, 1995. "Does Active Labour-Market Policy Increase Employment? Theoretical Considerations and Some Empirical Evidence from Sweden," Oxford Review of Economic Policy, Oxford University Press, vol. 11(1), pages 91-109, Spring.
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  2. Robert G. Fay, 1996. "Enhancing the Effectiveness of Active Labour Market Policies: Evidence from Programme Evaluations in OECD Countries," OECD Labour Market and Social Policy Occasional Papers 18, OECD, Directorate for Employment, Labour and Social Affairs. [Downloadable!]
  3. Calmfors, Lars & Lang, Harald, 1995. "Macroeconomic Effects of Active Labour Market Programmes in a Union Wage-Setting Model," Economic Journal, Royal Economic Society, vol. 105(430), pages 601-19, May. [Downloadable!] (restricted)
  4. Aghion, Philippe & Tirole, Jean, 1997. "Formal and Real Authority in Organizations," Journal of Political Economy, University of Chicago Press, vol. 105(1), pages 1-29, February.
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  5. Tirole, Jean, 1986. "Hierarchies and Bureaucracies: On the Role of Collusion in Organizations," Journal of Law, Economics and Organization, Oxford University Press, vol. 2(2), pages 181-214, Fall.
  6. Ohlsson, Henry, 1993. "Lags in the Effects of Labour Market Policy--An Empirical Analysis of Job Creation Measures," Applied Economics, Taylor and Francis Journals, vol. 25(3), pages 343-48, March.
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  7. Daniel S. Hamermesh, 1999. "The Art of Labormetrics," NBER Working Papers 6927, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  8. Dahlberg, M. & Forslund, A., 1999. "Direct Displacement Effects of Labour Market Programmes: the Case of Sweden," Papers 1999:22, Uppsala - Working Paper Series.
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  9. Skedinger, P., 1995. "Employment Policies and Displacement in the Youth Labour Market," Research Institute of Industrial Economics Working Papers 432, Research Institute of Industrial Economics (IFN).
  10. King, David N & Ma, Yue, 2000. "Decentralization and Macroeconomic Performance," Applied Economics Letters, Taylor and Francis Journals, vol. 7(1), pages 11-14, January. [Downloadable!] (restricted)
  11. Anne Morrison Piehl & Suzanne J. Cooper & Anthony A. Braga & David M. Kennedy, 1999. "Testing for Structural Breaks in the Evaluation of Programs," NBER Working Papers 7226, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Sianesi, Barbara, 2002. "Differential effects of Swedish active labour market programmes for unemployed adults during the 1990s," Working Paper Series 2002:5, IFAU - Institute for Labour Market Policy Evaluation. [Downloadable!]
    Other versions:
  2. Arjen de Vetten, 2007. "Incentives and Regional Coordination in Employment Services," CPB Memoranda 190, CPB Netherlands Bureau for Economic Policy Analysis. [Downloadable!]
  3. Barbara Sianesi, 2002. "An evaluation of the Swedish system of active labour market programmes in the 1990s," IFS Working Papers W02/01, Institute for Fiscal Studies. [Downloadable!]
  4. Sianesi, Barbara, 2001. "An evaluation of the active labour market programmes in Sweden," Working Paper Series 2001:5, IFAU - Institute for Labour Market Policy Evaluation. [Downloadable!]
  5. Mörk, Eva, 2003. "The impact of active labor market programs on municipal services," Working Paper Series 2003:2, IFAU - Institute for Labour Market Policy Evaluation. [Downloadable!]
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