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Decentralisation of active labour market policy: The case of Swedish local employment service committees

  • Lundin, Martin
  • Skedinger, Per

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 effects, 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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File URL: http://www.sciencedirect.com/science/article/pii/S0047-2727(05)00064-2
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Article provided by Elsevier in its journal Journal of Public Economics.

Volume (Year): 90 (2006)
Issue (Month): 4-5 (May)
Pages: 775-798

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Handle: RePEc:eee:pubeco:v:90:y:2006:i:4-5:p:775-798
Contact details of provider: Web page: http://www.elsevier.com/locate/inca/505578

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  1. Calmfors, L. & Skedinger, P., 1995. "Does Active Labour Market Policy Increase Employment? - Theoretical Considerations and Some Empirical Evidence from Sweden," Papers 590, Stockholm - International Economic Studies.
  2. Philippe Aghion & Jean Tirole, 1994. "Formal and Real Authority in Organizations," Working papers 95-8, Massachusetts Institute of Technology (MIT), Department of Economics.
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  15. Stephen H. Bell & Larry l. Orr & John D. Blomquist & Glen G. Cain, 1995. "Program Applicants as a Comparison Group in Evaluating Training Programs: Theory and a Test," Books from Upjohn Press, W.E. Upjohn Institute for Employment Research, number pacg, November.
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