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Privatization of Government Services: Pressure-Group Resistance and Service Transparency

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  • WERNER Z. HIRSCH
  • EVAN OSBORNE

Abstract

Even when efficiency gains can be expected from contracting out municipal services, it surprisingly rarely occurs. Political pressure by interest groups, especially unions, is usually assumed responsible. We argue that the effectiveness of such pressure is actually a function of a service's "transparency," which determines voter's knowledge of the quality and cost of the service as well as the tax burden. A model is presented of the interplay between union opposition to contracting and service transparency. Policies are offered to increase transparency and make contracting optimal for governments.

Suggested Citation

  • Werner Z. Hirsch & Evan Osborne, 2000. "Privatization of Government Services: Pressure-Group Resistance and Service Transparency," Journal of Labor Research, Transaction Publishers, vol. 21(2), pages 316-326, April.
    • Handle: RePEc:tra:jlabre:v:21:y:2000:i:2:p:316-326
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    Cited by:

    1. Patrice Jalette & Robert Hebdon, 2012. "Unions and Privatization: Opening the “Black Boxâ€," ILR Review, Cornell University, ILR School, vol. 65(1), pages 17-35, January.
    2. Asadu Ikechukwu, Ph.D & Chukwujekwu Charles Onwuka Ph.D, 2021. "Transparency and Accountability in Government: The Nigerian Experience," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 5(08), pages 16-29, August.
    3. Francisca Tejedo-Romero & Joaquim Filipe Ferraz Esteves Araujo, 2023. "Critical factors influencing information disclosure in public organisations," Palgrave Communications, Palgrave Macmillan, vol. 10(1), pages 1-12, December.

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