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Contracting Out Mandatory Counselling and Training for Long-Term Unemployed. Private For-Profit, Non-Profit, or Keep It Public?

Bart Cockx (UGent) and Stijn Baert (UGent)
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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.
Keywords
contracting out of employment services, non-profit versus profit, private provision of public services, timing-of-events, long-term unemployment

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Citation

Please use this url to cite or link to this publication:

MLA
Cockx, Bart, and Stijn Baert. “Contracting Out Mandatory Counselling and Training for Long-Term Unemployed. Private For-Profit, Non-Profit, or Keep It Public?” IZA discussion paper 2015 : n. pag. Print.
APA
Cockx, B., & Baert, S. (2015). Contracting Out Mandatory Counselling and Training for Long-Term Unemployed. Private For-Profit, Non-Profit, or Keep It Public? IZA discussion paper. Bonn: IZA.
Chicago author-date
Cockx, Bart, and Stijn Baert. 2015. “Contracting Out Mandatory Counselling and Training for Long-Term Unemployed. Private For-Profit, Non-Profit, or Keep It Public?” IZA Discussion Paper. Bonn: IZA.
Chicago author-date (all authors)
Cockx, Bart, and Stijn Baert. 2015. “Contracting Out Mandatory Counselling and Training for Long-Term Unemployed. Private For-Profit, Non-Profit, or Keep It Public?” IZA Discussion Paper. Bonn: IZA.
Vancouver
1.
Cockx B, Baert S. Contracting Out Mandatory Counselling and Training for Long-Term Unemployed. Private For-Profit, Non-Profit, or Keep It Public? IZA discussion paper. Bonn: IZA; 2015.
IEEE
[1]
B. Cockx and S. Baert, “Contracting Out Mandatory Counselling and Training for Long-Term Unemployed. Private For-Profit, Non-Profit, or Keep It Public?,” IZA discussion paper, vol. 9459. IZA, Bonn, 2015.
@misc{8509646,
  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. },
  author       = {Cockx, Bart and Baert, Stijn},
  keywords     = {contracting out of employment services,non-profit versus profit,private provision of public services,timing-of-events,long-term unemployment},
  language     = {eng},
  publisher    = {IZA},
  series       = {IZA discussion paper},
  title        = {Contracting Out Mandatory Counselling and Training for Long-Term Unemployed. Private For-Profit, Non-Profit, or Keep It Public?},
  url          = {http://ftp.iza.org/dp9459.pdf},
  volume       = {9459},
  year         = {2015},
}