This paper compares the effectiveness of public and private providers of employment services. Reporting from a randomized field experiment conducted in Denmark we assess empirically the case for contracting out employment services for a well-defined group of highly educated job-seekers (unemployed holding a university degree). Our findings suggest, first, that private providers deliver more intense, employment-oriented, and earlier services. Second, public and private provision of employment services are equally effective regarding subsequent labour market outcomes. And third, the two competing service delivery systems appear to be equally costly from a public spending perspective.
Url or DOI
Country
Denmark
Publication Year
2015
Employment incentives
Public sector employment
Private sector employment incentives
Labour market services
Counselling and monitoring
Job placement
Relocation assistance
Training
Classroom/vocational training
Labour market status
Unemployed (All cat.)
Funding Source
Other
Outcome Variable
Employment status
Data Source
Administrative
Evaluation Method
Randomization