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Political preferences and public sector outsourcing
Department of Economics, Uppsala University, Uppsala, Sweden; Research Institute of Industrial Economics (IFN), Stockholm, Sweden.
Research Institute of Industrial Economics (IFN), Stockholm, Sweden.ORCID iD: 0000-0001-8857-6116
2013 (English)In: European Journal of Political Economy, ISSN 0176-2680, E-ISSN 1873-5703, Vol. 30, p. 43-57Article in journal (Refereed) Published
Abstract [en]

Given the intensive and ideologically charged debate over the use of private contractors for publicly funded services, it is somewhat surprising that many social scientists have preferred to explain government outsourcing by the pursuit of economic efficiency. Starting out from different theories, we investigate political explanations of government outsourcing using a Swedish data set in which outsourcing varies between municipalities and over time, as well as between services. Our identification strategy focuses on two services with similar contracting problems and local market conditions: preschools and primary schools. We study a period in which Swedish municipalities had full discretion in the provision of preschools, while their influence on the private provision of primary education was limited by a national voucher system. The comparison of preschools with primary schools in a difference-in-differences model suggests that the political color of the ruling majority influences outsourcing, which is consistent with the Citizen Candidate model of representative democracy.

Place, publisher, year, edition, pages
Elsevier, 2013. Vol. 30, p. 43-57
Keywords [en]
Outsourcing, Ideology, Public provision, Contracting out, Child care, Education
National Category
Economics and Business
Identifiers
URN: urn:nbn:se:oru:diva-72653DOI: 10.1016/j.ejpoleco.2013.01.003ISI: 000319484800004Scopus ID: 2-s2.0-84873736441OAI: oai:DiVA.org:oru-72653DiVA, id: diva2:1290849
Available from: 2019-02-21 Created: 2019-02-21 Last updated: 2019-02-21Bibliographically approved

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Jordahl, Henrik

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CiteExportLink to record
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Citation style
  • apa
  • harvard1
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf