Public sector outsourcing

Panu Poutvaara and Henrik Jordahl

World of Labour, 2020, No 65v2, 65

Abstract: The decision to outsource public provision of services is multifaceted and context dependent. Doing so tends to lower labor intensity and increase its efficiency. Costs are usually lower, but quality problems can affect services like health care, though consumer choice has stimulated innovation and quality in both education and health care. Natural monopolies are less suitable for outsourcing, while network services (public transportation) may be outsourced through public tenders. Though some jobs may be lost in the short term, the long-term effects are generally positive for a wide variety of activities.

Keywords: public procurement; vouchers; outsourcing; health care; education (search for similar items in EconPapers)
JEL-codes: H11 H57 I11 I21 J45 L33 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Related works:
Journal Article: Public-sector outsourcing (2014)
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