Many OECD countries have taken steps to increase competition in areas that have been typically dominated by public monopolies in the past. The goal is to improve the production and delivery of public goods and services. Among these areas, governments have introduced market signals to make the public employment service (PES) contestable in some of its activities in order to improve its effectiveness. This has involved i) liberalisation of the rules and regulations governing private employment agencies; ii) the use of market-type mechanisms (MTMs) such as contracting-out; and iii) organisational reforms, for example separating purchasers and providers of services to jobseekers.

Separating purchasers and providers is an important requirement to make the delivery of public services contestable. For example, if the PES provides training and also purchases it on the open market, it may have the incentive to deal with only one segment of the market, making it difficult to compare its ...

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Paper provided by OECD Directorate for Employment, Labour and Social Affairs in its series OECD Labour Market and Social Policy Occasional Papers with number 25.

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Date of creation: 1997
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Handle: RePEc:oec:elsaaa:25-en

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1. Martin, John P. & Grubb, David, 2001. "What works and for whom: a review of OECD countries' experiences with active labour market policies," Working Paper Series 2001:14, IFAU - Institute for Labour Market Policy Evaluation. [Downloadable!]
2. Bruttel, Oliver, 2005. "Die Privatisierung der öffentlichen Arbeitsvermittlung : Erfahrungen aus Australien, den Niederlanden und Großbritannien (The privatisation of public employment services * experiences made in Austra," Zeitschrift für ArbeitsmarktForschung - Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 38(1), pages 7-29. [Downloadable!]
3. Bernhard, Sarah & Wolff, Joachim, 2008. "Contracting out placement services in Germany : is assignment to private providers effective for needy job-seekers?," IAB Discussion Paper 200805, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany]. [Downloadable!]

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