Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/123218
Authors: 
Cockx, Bart
Baert, Stijn
Year of Publication: 
2015
Series/Report no.: 
CESifo Working Paper 5587
Abstract: 
This study evaluates the effectiveness of contracting out mandatory publicly provided counselling and training for long-term unemployed in Flanders (Belgium) to private for-profit and non-profit organisations (FPOs and NPOs). A multivariate transition model exploits timing-of-events and novel exclusion restrictions to account for selection on unobservables. Overall, the intervention was highly effective in reducing unemployment duration, but also spurred employment instability and withdrawals from the labour force. FPOs slightly, but significantly enhanced exits to employment without reinforcing recidivism relative to the public provider but not significantly relative to NPOs. FPOs also charged lower prices and hence were the best performing providers.
Subjects: 
contracting out of employment services
non-profit versis profit
private provision of public services
timing-of-events
long-term unemployment
JEL: 
C21
C41
C53
H44
J64
J65
J68
Document Type: 
Working Paper

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