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New public management and the rule of economic incentives: Australian welfare-to-work from job market signalling perspective

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  • Mark Considine
  • Phuc Nguyen
  • Siobhan O’Sullivan

Abstract

Australia’s welfare-to-work system has undergone radical changes since the 1990s, with service delivery fully privatized in 2003 and incentives of various kinds introduced to underpin jobseeker and employment consultant activation. Informed by New Public Management (NPM), the reforms are intended to improve effectiveness and efficiency by addressing the problems of information asymmetry at different levels of the system. However, operationalizing NPM principles generated technical and regulatory challenges, and in this case, the incentive framework undermines some of the reform’s basic assumptions. This can trigger jobseekers’ and consultants’ rational decision-making behaviours which run contrary to programme expectations, hence generating suboptimal performance.

Suggested Citation

  • Mark Considine & Phuc Nguyen & Siobhan O’Sullivan, 2018. "New public management and the rule of economic incentives: Australian welfare-to-work from job market signalling perspective," Public Management Review, Taylor & Francis Journals, vol. 20(8), pages 1186-1204, August.
    • Handle: RePEc:taf:rpxmxx:v:20:y:2018:i:8:p:1186-1204
    DOI: 10.1080/14719037.2017.1346140
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    Cited by:

    1. Alexandra Devine & Marissa Shields & Stefanie Dimov & Helen Dickinson & Cathy Vaughan & Rebecca Bentley & Anthony D. LaMontagne & Anne Kavanagh, 2021. "Australia’s Disability Employment Services Program: Participant Perspectives on Factors Influencing Access to Work," IJERPH, MDPI, vol. 18(21), pages 1-20, October.
    2. Auriacombe Christelle & Meyer Natanya, 2020. "Realising South Africa's National Development Plan goals: The need for change to a collaborative democracy to facilitate community participation," Central European Journal of Public Policy, Sciendo, vol. 14(2), pages 1-13, December.
    3. Simone Casey, 2022. "Back to the future: coercive conditionality in the jobactive era," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 25(1), pages 1-24.

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