Working Paper Series
Decentralisation of Active Labour Market Policy: The Case of Swedish Local Employment Service Committees
() and Martin Lundin
Abstract: 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 ex-amine 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 repre-sentatives and the central government's goals.
Regarding programme effects, our econometric findings do not indicate any
increase in geographical lock-in of the unem-ployed, 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.
Keywords: Active labour market policy; Decentralisation; Intergovernmental relations; (follow links to similar papers)
JEL-Codes: H70; J60; (follow links to similar papers)
39 pages, September 22, 2000
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