Decentralisation of active labour market policy: The case of Swedish local employment service committees |
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| Institution: | 1. Uppsala University, Department of Political Science, Uppsala, Sweden;2. Institute for Labour Market Policy Evaluation (IFAU), Uppsala, Sweden;3. Research Institute of Industrial Economics (IUI), PO Box 55665, SE-102 14 Stockholm, Sweden;1. Control and Intelligent Processing Center of Excellence, School of Electrical and Computer Engineering, College of Engineering, University of Tehran, Tehran, Iran;2. School of Cognitive Sciences, Institute for Research in Fundamental Sciences (IPM), Tehran, Iran;3. Department of Statistics, Ludwig Maximilians University, Munich, Germany;1. Department of Surgery, University of Louisville School of Medicine, Louisville, KY 40292, USA;2. Department of Diagnostic Radiology, University of Louisville School of Medicine, Louisville, KY, USA;3. Department of Emergency Medicine, University of Louisville School of Medicine, Louisville, KY, USA;4. Department of Surgery, Oregon Health Sciences University, Portland, OR, USA;2. University of Copenhagen, Copenhagen, Denmark;3. Department of Urology, Rigshospitalet, Copenhagen, Denmark;4. Department of Urology, University Hospital Zealand, Roskilde, Denmark;1. Division of Urological Surgery and Center for Surgery and Public Health, Brigham and Women''s Hospital, Harvard Medical School, Boston, MA, USA;2. Department of Urology, Hamburg University Hospital, Hamburg, Germany;3. Lank Center for Genitourinary Oncology, Dana Farber Cancer Institute, Harvard Medical School, Boston, MA, USA;4. Division of General Internal Medicine and Center for Surgery and Public Health, Brigham and Women''s Hospital, Harvard Medical School, Boston, MA, USA;5. Division of Urological Surgery, Brigham and Women''s Hospital, Harvard Medical School, Boston, MA, USA;6. Center for Surgery and Public Health, Brigham and Women''s Hospital, Harvard Medical School, Boston, MA, USA |
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| Abstract: | Decentralisation of decision-making in labour market policy may increase efficiency, since local authorities have first-hand knowledge about local labour market problems. However, decentralisation may also be associated with fiscal externalities generating misallocation. 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 certain regions. 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 projects organised by the municipalities and increase targeting on outsiders in the labour market. The latter result is consistent with the hypothesis that municipalities used their increasing influence in order to improve municipal budgets at the expense of the central government. |
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