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Organizational form and performance: An empirical investigation of nonprofit and for-profit job-training service providers

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  • Carolyn J. Heinrich

Abstract

While research on the distinctions between for-profit and nonprofit organizations and their changing service sector shares is vast, there is comparatively little empirical evidence on the consequences of their differing attributes for social program outcomes. This article presents research on publicly subsidized for-profit and nonprofit job-training service providers, namely whether organizational form influences client enrollment, service delivery activities, or performance, as measured in terms of participant outcomes. The findings show that nonprofit providers were not more likely to serve more disadvantaged clients and that neither for-profit nor nonprofit service providers were consistently more effective in increasing participants' earn-ings and employment rates. When performance incentives were included in service providers' contracts, contractors of all forms performed significantly better across all participant outcomes examined. © 2000 by the Association for Public Policy and Management.

Suggested Citation

  • Carolyn J. Heinrich, 2000. "Organizational form and performance: An empirical investigation of nonprofit and for-profit job-training service providers," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 19(2), pages 233-261.
    • Handle: RePEc:wly:jpamgt:v:19:y:2000:i:2:p:233-261
    DOI: 10.1002/(SICI)1520-6688(200021)19:2<233::AID-PAM4>3.0.CO;2-N
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    References listed on IDEAS

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    1. Carolyn J. Heinrich & Laurence E. Lynn Jr., 1999. "Governance And Performance: The Influence of Program Structure and Management on Job Training Partnership Act (JTPA) Program Outcomes," JCPR Working Papers 107, Northwestern University/University of Chicago Joint Center for Poverty Research.
    2. Gerald Marschke & Pascal Courty, 2000. "An Empirical Investigation of Gaming Responses to Performance Incentives," Discussion Papers 00-12, University at Albany, SUNY, Department of Economics.
    3. Louis S. Jacobson & Robert J. LaLonde & Daniel G. Sullivan, 1997. "The return from community college schooling for displaced workers," Working Paper Series, Macroeconomic Issues WP-97-16, Federal Reserve Bank of Chicago.
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    Cited by:

    1. Michael White, 2004. "Effective Job Search Practice in the UK's Mandatory Welfare-to-Work Programme for Youth," PSI Research Discussion Series 17, Policy Studies Institute, UK.
    2. Cockx, Bart & Baert, Stijn, 2015. "Contracting Out Mandatory Counselling and Training for Long-Term Unemployed: Private For-Profit or Non-Profit, or Keep It Public?," IZA Discussion Papers 9459, Institute of Labor Economics (IZA).
    3. Carolyn J. Heinrich & Elizabeth Fournier, 2004. "Dimensions of publicness and performance in substance abuse treatment organizations," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 23(1), pages 49-70.
    4. Carolyn J. Heinrich & Laurence E. Lynn Jr., 1999. "Means And Ends: A Comparative Study Of Empirical Methods For Investigating Governance And Performance," JCPR Working Papers 109, Northwestern University/University of Chicago Joint Center for Poverty Research.
    5. Arthur C. Brooks, 2005. "What do nonprofit organizations seek? (And why should policymakers care?)," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 24(3), pages 543-558.
    6. Adam M. Butz, 2015. "Administrative Privatization and Employment Outcomes in the Implementation of Temporary Assistance to Needy Families," Evaluation Review, , vol. 39(4), pages 363-394, August.
    7. Paul A. Grout & Michelle J. Yong, 2003. "The Role of Donated Labour and Not for Profit at the Public/Private Interface," The Centre for Market and Public Organisation 03/074, The Centre for Market and Public Organisation, University of Bristol, UK.
    8. McBeath, Bowen & Collins-Camargo, Crystal & Chuang, Emmeline & Wells, Rebecca & Bunger, Alicia C. & Jolles, Mónica Pérez, 2014. "New directions for research on the organizational and institutional context of child welfare agencies: Introduction to the symposium on “The Organizational and Managerial Context of Private Child Welf," Children and Youth Services Review, Elsevier, vol. 38(C), pages 83-92.
    9. Anna A. Amirkhanyan & Hyun Joon Kim & Kristina T. Lambright, 2008. "Does the public sector outperform the nonprofit and for-profit sectors? Evidence from a national panel study on nursing home quality and access," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 27(2), pages 326-353.
    10. Pierre Koning & Joëlle Noailly & Sabine Visser, 2007. "Do non-profits make a difference? Evaluating non-profit vis-à-vis for-profit organisations in social services," CPB Document 142, CPB Netherlands Bureau for Economic Policy Analysis.
    11. Pierre Koning, 2007. "Non-profit provision of job training and mediation services; an empirical analysis using contract data of job training service providers," CPB Discussion Paper 94.rdf, CPB Netherlands Bureau for Economic Policy Analysis.
    12. Pierre Koning, 2007. "Non-profit provision of job training and mediation services; an empirical analysis using contract data of job training service providers," CPB Discussion Paper 94, CPB Netherlands Bureau for Economic Policy Analysis.

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