The Marketization of Employment Services : The Dilemmas of Europe's Work-first Welfare States

Across Europe, market mechanisms are spreading into areas where they did not exist before. In public administration, market governance is displacing other ways of coordinating public services. In social policy, the welfare state is retreating from its historic task of protecting citizens from the discipline of the market. In industrial relations, labor and management are negotiating with an eye to competitiveness, often against new non-union market players. What is marketization, and what are its effects? This book uses employment services in Denmark, Germany, and Great Britain as a window to explore the rise of market mechanisms. Based on more than 100 interviews with funders, managers, front-line workers, and others, the authors discuss the internal workings of these markets and the organizations that provide the services. This book gives readers new tools to analyse market competition and its effects. It provides a new conceptualization of the markets themselves, the dilemmas and tradeoffs that they generate, and the differing services and workplaces that result. It is aimed at students and researchers in the applied fields of social policy, public administration, and employment relations and has important implications for comparative political economy and welfare states. Cover 1 The Marketization of Employment Services: The Dilemmas of Europe’s Work-First Welfare States 4 Copyright 5 Acknowledgments 6 Contents 8 List of Figures 10 List of Tables 12 List of Abbreviations 14 1: Introduction 16 The Conceptual Background: the Political Economy of Welfare and Work 18 What Is the Change in Markets that Matters? 20 What Are the Consequences of Marketization? 23 How Do These Dynamics Vary between and within Countries? 25 Methods 28 The Book and its Findings 32 2: Employment Services: Three Marketization Stories 36 What Are Employment Services? 38 Assessment and Sorting 39 Advice and Guidance 39 Training 39 Job Placement 40 Organizing Make-Work Schemes 40 Combining and Governing Tasks 41 Denmark 42 Great Britain 47 Germany 51 Conclusion 57 3: Marketization and Transaction Modes 59 Purchasers, Providers, and Clients 61 Elements of the Transaction 63 Choice of Provider 64 Can Procurement Law Apply? 64 Openness 66 Frequency 68 Prescription 69 Prices 70 The Diversity of Transactions 72 Grants 72 Vouchers 74 Public Purchasing 75 Conclusion 79 Appendix A: Contracting by Danish Municipalities 80 Appendix B: Contracting on Britain’s Work Programme 84 Appendix C: Vouchers and Contracting in Germany 90 Competitive Tendering 91 Training Vouchers 95 Placement Vouchers 97 4: Employment-Services Sectors under Resource Scarcity and Uncertainty 98 Denmark 100 Great Britain 104 Germany: Funder Dominance 112 Discussion 118 5: Employment Relations and Labor Process: Institutional Disorganization and Management Control 121 Marketization and Employment in Public Services 122 Denmark 127 Voice 127 Pay Determination 128 Job Insecurity 128 Performance Management 129 Professions 130 Interaction with Clients 131 Great Britain 132 Worker Voice 132 Pay Determination 134 Job Insecurity 134 Professions 135 Performance Management 137 Interaction with Clients 137 Germany 140 Worker Voice 140 Pay Determination 142 Job Insecurity 144 Professions 145 Performance Management 146 Interaction with Clients 147 Comparison and Conclusion 149 6: Governance Implications: Dilemmas and Tradeoffs 154 Price versus Quality 156 Payment by Results versus Equal Access to Services 162 User Choice versus User Compulsion 166 Openness and Transparency versus Transaction Costs 169 Insourcing as a Response to the Dilemmas 172 Marketization as a Governance Problem 174 Conclusion 176 7: Conclusion 178 How Marketization Has Reshaped Employment Services 179 What Is New Here? 181 The Meaning of Marketization 181 The Effects of Marketization on Services 182 Similarities and Differences between the Three Countries 184 Future Directions in Employment Services 186 Broader Lessons on the Changing Role of Markets in Europe 189 Bibliography 192 Index 204 Content: Cover The Marketization of Employment Services: The Dilemmas of Europe's Work-First Welfare States Copyright Acknowledgments Contents List of Figures List of Tables List of Abbreviations 1: Introduction The Conceptual Background: the Political Economy of Welfare and Work What Is the Change in Markets that Matters? What Are the Consequences of Marketization? How Do These Dynamics Vary between and within Countries? Methods The Book and its Findings 2: Employment Services: Three Marketization Stories What Are Employment Services? Assessment and Sorting Advice and Guidance TrainingJob Placement Organizing Make-Work Schemes Combining and Governing Tasks Denmark Great Britain Germany Conclusion 3: Marketization and Transaction Modes Purchasers, Providers, and Clients Elements of the Transaction Choice of Provider Can Procurement Law Apply? Openness Frequency Prescription Prices The Diversity of Transactions Grants Vouchers Public Purchasing Conclusion Appendix A: Contracting by Danish Municipalities Appendix B: Contracting on Britain's Work Programme Appendix C: Vouchers and Contracting in Germany Competitive Tendering Training Vouchers Placement Vouchers4: Employment-Services Sectors under Resource Scarcity and Uncertainty Denmark Great Britain Germany: Funder Dominance Discussion 5: Employment Relations and Labor Process: Institutional Disorganization and Management Control Marketization and Employment in Public Services Denmark Voice Pay Determination Job Insecurity Performance Management Professions Interaction with Clients Great Britain Worker Voice Pay Determination Job Insecurity Professions Performance Management Interaction with Clients Germany Worker Voice Pay Determination Job Insecurity ProfessionsPerformance Management Interaction with Clients Comparison and Conclusion 6: Governance Implications: Dilemmas and Tradeoffs Price versus Quality Payment by Results versus Equal Access to Services User Choice versus User Compulsion Openness and Transparency versus Transaction Costs Insourcing as a Response to the Dilemmas Marketization as a Governance Problem Conclusion 7: Conclusion How Marketization Has Reshaped Employment Services What Is New Here? The Meaning of Marketization The Effects of Marketization on Services Similarities and Differences between the Three CountriesFuture Directions in Employment Services Broader Lessons on the Changing Role of Markets in Europe Bibliography Index La jaquette indique : "What is marketization, and what are its effects? This book uses employment services in Denmark, Germany, and Great Britain as a window to explore the rise of market mechanisms. Based on more than 100 interviews with funders, managers, front-line workers, and others, the authors discuss the internal workings of these markets and the organizations that provide the services. This book gives readers new tools to analyse market competition and its effects. It provides a new conceptualization of the markets themselves, the dilemmas and tradeoffs that they generate, and the differing services and workplaces that result. It is aimed at students and researchers in the applied fields of social policy, public administration, and employment relations and has important implications for comparative political economy and welfare states" Markets have become the favoured means for re-engineering public services, to reduce costs while increasing innovation, performance, accountability to taxpayers, and responsiveness to clients. This book provides a new conceptualization of the markets, the dilemmas and tradeoffs they generate, and the differing services and workplaces that result.