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Decentralisation of active labour market policy: The case of Swedish local employment service committees

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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 examine 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 representatives and the central government's goals. Regarding programme effects, our econometric findings do not indicate any increase in geographical lock-in of the unemployed, 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.

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  • Lundin, Martin & Skedinger, Per, 2000. "Decentralisation of active labour market policy: The case of Swedish local employment service committees," Working Paper Series 2000:6, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    • Handle: RePEc:hhs:ifauwp:2000_006
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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. Mergele, Lukas & Weber, Michael, 2020. "Public employment services under decentralization: Evidence from a natural experiment," Journal of Public Economics, Elsevier, vol. 182(C).
    5. 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).
    6. 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.
    7. 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.
    8. Bruno Emmanuel ONGO NKOA & Derick Ulrich YOUNDA, 2022. "L’urbanisation accroît-elle l’assiette fiscale locale dans un contexte de décentralisation en Afrique subsaharienne ?," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 55, pages 93-111.
    9. 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.
    10. 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.
    11. 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.
    12. Lukas Mergele, 2016. "Are there gains from decentralizing public employment offices?," Working Papers 2015020, Berlin Doctoral Program in Economics and Management Science (BDPEMS).
    13. Mörk, Eva & Ottosson, Lillit & Vikman, Ulrika, 2021. "To work or not to work? Effects of temporary public employment on future employment and benefits," Working Paper Series 2021:12, IFAU - Institute for Evaluation of Labour Market and Education Policy.

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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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