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Marketization of Elderly Care in Sweden

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  • Suzuki, Kenji

    (European Institute of Japanese Studies)

Abstract

Ten years have passed since the Swedish government widely encouraged its municipalities to marketize their elderly care services. There has been a long-standing discussion on the benefit of marketization during that period, but most of the discussions were developed from the case studies of a limited number of municipalities. With lately available statistics, the present study tries to find some general rules across many different municipalities. Regarding the motives of the municipalities for marketization of elderly care, there is apparently a tendency that municipalities with more bourgeois politicians and a larger size of elderly population are likely to rely more on privately managed service. As for the effect of marketization, it is shown that the cost performance is better in those municipalities allowing the participation of private providers to certain extent than in others. Also, the cost performance seems to have an association with the political representation of municipalities, although somewhat modestly.

Suggested Citation

  • Suzuki, Kenji, 2001. "Marketization of Elderly Care in Sweden," EIJS Working Paper Series 137, Stockholm School of Economics, The European Institute of Japanese Studies.
    • Handle: RePEc:hhs:eijswp:0137
    as

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    File URL: http://swopec.hhs.se/eijswp/papers/eijswp0137.pdf
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    References listed on IDEAS

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    1. Erik Norrman & Charles E. McLure Jr., 1997. "Tax Policy in Sweden," NBER Chapters, in: The Welfare State in Transition: Reforming the Swedish Model, pages 109-154, National Bureau of Economic Research, Inc.
    2. Sherwin Rosen, 1997. "Public Employment, Taxes, and the Welfare State in Sweden," NBER Chapters, in: The Welfare State in Transition: Reforming the Swedish Model, pages 79-108, National Bureau of Economic Research, Inc.
    3. Richard B. Freeman & Robert Topel & Birgitta Swedenborg, 1997. "The Welfare State in Transition: Reforming the Swedish Model," NBER Books, National Bureau of Economic Research, Inc, number free97-1.
    4. Rune Ervik & Stein Kuhnle, 1996. "The Nordic Welfare Model and the European Union," Palgrave Macmillan Books, in: Bent Greve (ed.), Comparative Welfare Systems, chapter 6, pages 87-107, Palgrave Macmillan.
    5. Freeman, Richard B. & Topel, Robert H. & Swedenborg, Birgitta (ed.), 1997. "The Welfare State in Transition," National Bureau of Economic Research Books, University of Chicago Press, edition 1, number 9780226261782, September.
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    Cited by:

    1. Morten Bennedsen & Christian Schultz, 2003. "Outsourcing, Market Structure and Elections," CIE Discussion Papers 2003-05, University of Copenhagen. Department of Economics. Centre for Industrial Economics.

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    More about this item

    Keywords

    elderly care; market competition; Sweden; municipality;
    All these keywords.

    JEL classification:

    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • L33 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Comparison of Public and Private Enterprise and Nonprofit Institutions; Privatization; Contracting Out

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