Employment, privatization, and managerial choice: Does contracting out reduce public sector employment?

Sergio Fernandez, Craig R Smith, Jeffrey B. Wenger

Research output: Contribution to journalArticle

22 Citations (Scopus)

Abstract

We examine the effects of governments' use of alternative service provision on public employment using panel data from a nationally representative sample of local governments. We model the effects of alternative service provision on the size of the public workforce and hypothesize that alternative provision jointly impacts both full- and part-time employment. We find evidence of an inter-relationship between these employment types. Our results from seemingly unrelated and 3SLS regressions indicate that full-time employment in the public sector declines when additional services are provided by for-profit providers, while part-time employment increases. The net employment effect in the public sector is negative when government services are moved to the for-profit sector. These combined effects result in a compositional shift toward more part-time public sector employment.

Original languageEnglish (US)
Pages (from-to)57-77
Number of pages21
JournalJournal of Policy Analysis and Management
Volume26
Issue number1
DOIs
StatePublished - Dec 2007
Externally publishedYes

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privatization
public sector
part-time work
profit
Privatization
Contracting out
Public sector
regression
evidence
time
Service provision

ASJC Scopus subject areas

  • Sociology and Political Science
  • Public Administration
  • Business, Management and Accounting(all)

Cite this

Employment, privatization, and managerial choice : Does contracting out reduce public sector employment? / Fernandez, Sergio; Smith, Craig R; Wenger, Jeffrey B.

In: Journal of Policy Analysis and Management, Vol. 26, No. 1, 12.2007, p. 57-77.

Research output: Contribution to journalArticle

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