OECD Social, Employment and Migration Working Papers

This series is designed to make available to a wider readership selected labour market, social policy and migration studies prepared for use within the OECD. Authorship is usually collective, but principal writers are named. The papers are generally available only in their original language - English or French - with a summary in the other.

English, French

Design Choices in Market Competition for Employment Services for the Long-Term Unemployed

  1. Most Western countries have a long tradition of employment service provision by public bodies and non-profit organisations, but not by for-profit organisations. The creation of a quasi-market arrangement is not a simple choice for government. This paper underscores the difficulties and discusses design options. It calls for a complex balancing act between regulation and the creation of room for market competition, between old and new instruments and procedures, and between efficiency and equity. It identifies as two key issues the need to actively create sufficient room for market competition, and the need for "positive creaming" which encourages providers to concentrate their efforts on the most disadvantaged target groups.
  1. The paper starts by stating the principles and preconditions for market competition, with a focus on possible quasi-market arrangements for strengthening service provision for the long-term unemployed in Flanders. It sets out four models for contracting with ...


JEL: J68: Labor and Demographic Economics / Mobility, Unemployment, Vacancies, and Immigrant Workers / Mobility, Unemployment, and Vacancies: Public Policy; I38: Health, Education, and Welfare / Welfare, Well-Being, and Poverty / Welfare, Well-Being, and Poverty: Government Programs; Provision and Effects of Welfare Programs; H53: Public Economics / National Government Expenditures and Related Policies / National Government Expenditures and Welfare Programs
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