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Die Privatisierung der öffentlichen Arbeitsvermittlung : Erfahrungen aus Australien, den Niederlanden und Großbritannien (The privatisation of public employment services * experiences made in Australia, the Netherlands and Great Britain)


  • Bruttel, Oliver


"This article examines the consequences of contracting-out on the basis of the four criteria of efficiency, economy, effectiveness and equality (3 or 4 e's concept), which are borrowed from New Public Management research. The paper is based on 76 expert interviews and informative discussions conducted in the three countries. In addition, contractual documents and other primary sources were evaluated and the existing secondary literature was taken into account. To sum up, private providers seem to have advantages in all four dimensions. Efficiency can be increased by competition incentives, outcome-dependent payment and a sustained measurement of performance. It is possible to achieve a higher level of economy by means of modern personnel policy and the scope available to private providers in buying in additional expertise for their case management. The effectiveness of job placement is raised in particular by the flexibility of the providers. The danger of private providers taking the pick of the bunch can be counteracted, perhaps even better than in a public employment service, by various mechanisms (e.g. performance measurement, differentiation of target groups or involvement of the job-seekers in the quality control). The increasing distribution of contracting-out in countries other than those observed here (e.g. Belgium, Denmark) should be a reason to lead an open discussion about this reform approach in Germany too. " (Author's abstract, IAB-Doku) ((en))

Suggested Citation

  • Bruttel, Oliver, 2005. "Die Privatisierung der öffentlichen Arbeitsvermittlung : Erfahrungen aus Australien, den Niederlanden und Großbritannien (The privatisation of public employment services * experiences made in Australi," 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.
  • Handle: RePEc:iab:iabzaf:v:2005:i:1:p:7-29

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    References listed on IDEAS

    1. Baumol, William J, 1982. "Contestable Markets: An Uprising in the Theory of Industry Structure," American Economic Review, American Economic Association, vol. 72(1), pages 1-15, March.
    2. Productivity Commission, 2002. "Independent review of the Job Network," Labor and Demography 0210002, EconWPA.
    3. Prager, J., 1992. "Contracting Out: Theory and Policy," Working Papers 92-50, C.V. Starr Center for Applied Economics, New York University.
    4. Oliver Hart & Andrei Shleifer & Robert W. Vishny, 1997. "The Proper Scope of Government: Theory and an Application to Prisons," The Quarterly Journal of Economics, Oxford University Press, vol. 112(4), pages 1127-1161.
    5. Robert Gibbons, 1998. "Incentives in Organizations," Journal of Economic Perspectives, American Economic Association, vol. 12(4), pages 115-132, Fall.
    6. David E. M. Sappington, 1991. "Incentives in Principal-Agent Relationships," Journal of Economic Perspectives, American Economic Association, vol. 5(2), pages 45-66, Spring.
    7. James J. Heckman & Carolyn Heinrich & Jeffrey Smith, 2002. "The Performance of Performance Standards," Journal of Human Resources, University of Wisconsin Press, vol. 37(4), pages 778-811.
    8. Rainer Pischner & Jürgen Schupp & Gert G. Wagner, 2002. "Arbeitsvermittlung durch das Arbeitsamt: Reform des Berichtssystems dringend erforderlich," DIW Wochenbericht, DIW Berlin, German Institute for Economic Research, vol. 69(9), pages 145-152.
    9. 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 Evaluation of Labour Market and Education Policy.
    10. Gregory, Robert G. & Borland, Jeff, 1999. "Recent developments in public sector labor markets," Handbook of Labor Economics,in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 53, pages 3573-3630 Elsevier.
    11. repec:ilo:ilowps:342121 is not listed on IDEAS
    12. repec:hrv:faseco:30727607 is not listed on IDEAS
    13. Robert G. Fay, 1997. "Making the Public Employment Service More Effective through the Introduction of Market Signals," OECD Labour Market and Social Policy Occasional Papers 25, OECD Publishing.
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