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

Author

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  • Skedinger, Per

    (The Research Institute of Industrial Economics)

  • Lundin, Martin

    (Office of Labour Market Policy Evaluation (IFAU))

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 ex-amine 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 repre-sentatives and the central government's goals. Regarding programme effects, our econometric findings do not indicate any increase in geographical lock-in of the unem-ployed, 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.

Suggested Citation

  • Skedinger, Per & Lundin, Martin, 2000. "Decentralisation of Active Labour Market Policy: The Case of Swedish Local Employment Service Committees," Working Paper Series 537, Research Institute of Industrial Economics.
  • Handle: RePEc:hhs:iuiwop:0537
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    Cited by:

    1. Barbara Sianesi, 2001. "Differential effects of Swedish active labour market programmes for unemployed adults during the 1990s," IFS Working Papers W01/25, Institute for Fiscal Studies.
    2. Mergele, Lukas & Weber, Michael, 2020. "Public employment services under decentralization: Evidence from a natural experiment," Journal of Public Economics, Elsevier, vol. 182(C).
    3. Arjen de Vetten, 2007. "Incentives and Regional Coordination in Employment Services," CPB Memorandum 190, CPB Netherlands Bureau for Economic Policy Analysis.
    4. Chen, Yiu Por (Vincent), 2009. "Cream-Skimmer or Underdog? Labor Type Selectivity, Pre-Program Wage, and Rural Labor Training Program Outcome," IZA Discussion Papers 3979, Institute of Labor Economics (IZA).
    5. 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.
    6. Mörk, Eva, 2003. "The impact of active labor market programs on municipal services," Working Paper Series 2003:2, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    7. Sianesi, Barbara, 2001. "An evaluation of the active labour market programmes in Sweden," Working Paper Series 2001:5, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    8. Lourens Broersma & Arjen Edzes & Jouke van Dijk, 2011. "The Effects of Municipal Policy Strategies on Social Assistance Inflow and Outflow in the Netherlands, 1999–2007," Environment and Planning C, , vol. 29(4), pages 709-727, August.
    9. Lundin, Martin & Skedinger, Per, 2006. "Decentralisation of active labour market policy: The case of Swedish local employment service committees," Journal of Public Economics, Elsevier, vol. 90(4-5), pages 775-798, May.
    10. Lukas Mergele, 2016. "Are there gains from decentralizing public employment offices?," Working Papers 2015020, Berlin Doctoral Program in Economics and Management Science (BDPEMS).

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    More about this item

    Keywords

    Active labour market policy; Decentralisation; Intergovernmental relations;
    All these keywords.

    JEL classification:

    • H70 - Public Economics - - State and Local Government; Intergovernmental Relations - - - General
    • J60 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - General

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