Organizational form and performance: An empirical investigation of nonprofit and for‐profit job‐training service providers

While research on the distinctions between for‐profit and nonprofit organizations and their changing service sector shares is vast, there is comparatively little empirical evidence on the consequences of their differing attributes for social program outcomes. This article presents research on publicly subsidized for‐profit and nonprofit job‐training service providers, namely whether organizational form influences client enrollment, service delivery activities, or performance, as measured in terms of participant outcomes. The findings show that nonprofit providers were not more likely to serve more disadvantaged clients and that neither for‐profit nor nonprofit service providers were consistently more effective in increasing participants' earn‐ings and employment rates. When performance incentives were included in service providers' contracts, contractors of all forms performed significantly better across all participant outcomes examined. © 2000 by the Association for Public Policy and Management.     

The effects of an employer subsidy on employment outcomes: A study of the work opportunity and welfare‐to‐work tax credits

Employer subsidies such as the Work Opportunity Tax Credit (WOTC) and the Welfare‐to‐Work Tax Credit (WtW) are designed to encourage employment by partially reimbursing employers for wages paid to certain welfare recipients and other disadvantaged workers. In this paper, I examine the effects of these subsidies on employment, wages, and job tenure using unique administrative data from Wisconsin. My ability to precisely identify the subsidy‐certified workers allows me to distinguish the effects of program participation from mere eligibility. Using propensity score matching estimation, I find some evidence of short‐term improvements in labor market outcomes, but little evidence of sustained benefits. © 2008 by the Association for Public Policy Analysis and Management.     

Reforming Social Services in Hong Kong: The Role of Contracting and Performance Management in the Non‐Profit Sector

Contracts and performance management, along with the concept of consumerism, have become the fundamental metaphors for New Public Management (NPM) and key changes in the public service. ‘Doing well while doing good’ and finding generally acceptable accountability measures for social services have become the perennial aspirations of planners, service providers and funders. This article examines the contingent factors and rationales behind the quality movement and recontracting exercise in reforming the delivery of personal social service programs in Hong Kong within the framework of New Public Management (NPM). It explains the use of long‐term relational contracts rather than the standard business contracts between the government as funder and non‐profit organisations as service providers. It also deals with the complex relationships among quality issues, quality standards, consumerism, accountability, performance indicators, and performance management.     

State Social Services Contracting: Exploring the Determinants of Effective Contract Accountability

This article examines the effectiveness of contract accountability in social service contracts. The analysis is based on five case studies of Kansas contracts for selected welfare, Medicaid, and foster care and adoption services. Results indicate the state has achieved moderate to high levels of accountability effectiveness, especially in terms of specifying social service contracts and selecting appropriate accountability strategies. However, accountability is undermined by the use of risk shifting, reliance on a system of multiple competing providers, and the adoption of new information technologies. These conclusions contradict the conventional wisdom, theory, and existing research on contracting.     

The Cost‐Effectiveness of Welfare‐to‐Work Programs: A Meta‐Analysis

This article uses the tools of meta‐analysis to assess cost–benefit studies of 50 mandatory welfare‐to‐work programs that were targeted at Aid for Families with Dependent Children recipients and evaluated by random assignment. The findings suggest that the costs of a typical evaluated welfare‐to‐work program probably exceeded its benefits from the perspective of the government, but those assigned to the program, and possibly society as a whole, may reap small positive net benefits. However, there are individual programs that are very cost‐beneficial. Further analyses of the determinants of the cost‐benefits of welfare‐to‐work programs to government and society as a whole show that some services are cost‐neutral, but others entail net costs, which are sometimes substantial. The findings suggest that less successful programs might be made more cost‐beneficial by dropping vocational training and basic education as program components, leaving mainly lower cost components, such as mandated job search and sanctions, but also possibly the more costly financial incentives.     

Linking program implementation and effectiveness: Lessons from a pooled sample of welfare‐to‐work experiments

This paper addresses the question: How does implementation influence the effectiveness of mandatory welfare‐to‐work programs? Data from three large‐scale, multi‐site random assignment experiments were pooled; quantitative measures of program implementation were constructed; and multilevel statistical modeling was used to examine the relationship between program implementation and effects on short‐term client earnings. Individual‐level data were analyzed for 69,399 sample members and group‐level implementation data were analyzed for 59 local programs. Findings indicate that, other things being equal, earnings effects are increased by: an emphasis on quick client employment, an emphasis on personalized client attention, staff caseloads that do not get too large, and limited use of basic education. Findings also show that mandatory welfare‐to‐work programs can be effective for many types of people, and that focusing on clients who are especially job‐ready (or not) does not have a consistent influence on a program's effectiveness. © 2003 by the Association for Public Policy Analysis and Management     

Administrative (de)centralization,performance equity,and outcome achievement in rural contexts: An empirical study of U.S. child welfare systems

Whether public services are better delivered through centralized or decentralized administrative systems is one of the most enduring debates in public administration. This article contributes to the debate with a study of program outcome achievement in U.S. child welfare services. We examine whether centralized state‐administered or decentralized county‐administered systems are more successful at realizing desired outcomes, which exhibit greater performance equity, and which are more successful at securing program outcomes in rural settings. Using a coarsened exact matching approach to quasi‐experimental research, we find that centralized child welfare systems exhibit greater success at achieving desired outcomes—in both rural contexts and overall. No discernible difference is found in centralized and decentralized systems' performance equity; outcome disparities exist under both structures. The study thus lends credence to centralization arguments, but at the same time cautions that centralized administration is not a structural panacea.     

Institutional competitiveness,social investment,and welfare regimes

Are the rather generous welfare regimes found in most European countries sustainable; that is, are they competitive in a globalizing economy? Or will they, on the contrary, be crowded out by the more austere and less expensive regimes generally found in liberal Anglo‐Saxon countries? We first discuss this issue conceptually, focusing on the notions of institutional competitiveness, social investment, and short‐term and long‐term productivity. We then briefly present the results of an empirical study of 50 social indicators of policies and outcomes in 20 Organization for Economic Co‐operation and Development (OECD) countries during the early 2000s. We conclude that welfare regimes have not been forced to converge through a “race to the bottom.” There remain three distinct ways to face the “trilemma” of job growth, income inequality, and fiscal restraint: Nordic countries achieve high labor market participation through high social investment; Anglo‐Saxon countries attain the same objective through minimal public intervention; while Continental European countries experience fiscal pressures because their social protection schemes are not promoting participation to the same extent.     

Caring, Controlling, Contracting and Counting: Governments and Non-profits in Community Services

Performance measurement and contracting out are central elements of new public management systems. At first sight these elements seem necessarily connected for reasons of accountability. However, for some kinds of services, implementation of conventional performance measurement systems may exacerbate tensions in contracting out. Using a case study of child and family welfare services in NSW, this paper shows that differences in the missions and operating modes of public and non-government community service providers are thrown into sharp relief by performance measurement, when observed from the perspective of practitioners in service-providing agencies. Practitioners perceive that their priorities in service provision differ sharply from those of the department funding their activities — and seeking to measure their performance. These findings pose challenges for the 'partnership' model now prevalent in community services provision.     

Improving the Implementation and Effectiveness of Out‐of‐School‐Time Tutoring

School districts are spending millions on tutoring outside regular school day hours for economically and academically disadvantaged students in need of extra academic assistance. Under No Child Left Behind (NCLB), parents of children in persistently low‐performing schools were allowed to choose their child's tutoring provider, and together with school districts, they were also primarily responsible for holding providers in the private market accountable for performance. We present results from a multisite, mixed‐method longitudinal study of the impact of out‐of‐school time (OST) tutoring on student reading and mathematics achievement that link provider attributes and policy and program administration variables to tutoring program effectiveness. We find that many students are not getting enough hours of high‐quality, differentiated instruction to produce significant gains in their learning, in part because of high hourly rates charged by providers for tutoring. We identify strategies and policy levers that school districts can use to improve OST tutoring policy design and launch improved programs as waivers from NCLB are granted.     

BUREAUCRATS AS PURCHASERS OF HEALTH SERVICES: LIMITATIONS OF THE PUBLIC SECTOR FOR CONTRACTING

Contracting out of health services increasingly involves a new role for governments as purchasers of services. To date, emphasis has been on contractual outcomes and the contracting process, which may benefit from improvements in developing countries, has been understudied. This article uses evidence from wide scale NGO contracting in Pakistan and examines the performance of government purchasers in managing the contracting process; draws comparisons with NGO managed contracting; and identifies purchaser skills needed for contracting NGOs. We found that the contracting process is complex and government purchasers struggled to manage the contracting process despite the provision of well‐designed contracts and guidelines. Weaknesses were seen in three areas: (i) poor capacity for managing tendering; (ii) weak public sector governance resulting in slow processes, low interest and rent seeking pressures; and (iii) mistrust between government and the NGO sector. In comparison parallel contracting ventures managed by large NGOs generally resulted in faster implementation, closer contractual relationships, drew wider participation of NGOs and often provided technical support. Our findings do not dilute the importance of government in contracting but front the case for an independent purchasing agency, for example an experienced NGO, to manage public sector contracts for community based services with the government role instead being one of larger oversight. Copyright © 2011 John Wiley & Sons, Ltd.     

Front‐Door Difference‐in‐Differences Estimators

We develop front‐door difference‐in‐differences estimators as an extension of front‐door estimators. Under one‐sided noncompliance, an exclusion restriction, and assumptions analogous to parallel trends assumptions, this extension allows identification when the front‐door criterion does not hold. Even if the assumptions are relaxed, we show that the front‐door and front‐door difference‐in‐differences estimators may be combined to form bounds. Finally, we show that under one‐sided noncompliance, these techniques do not require the use of control units. We illustrate these points with an application to a job training study and with an application to Florida's early in‐person voting program. For the job training study, we show that these techniques can recover an experimental benchmark. For the Florida program, we find some evidence that early in‐person voting had small positive effects on turnout in 2008. This provides a counterpoint to recent claims that early voting had a negative effect on turnout in 2008.     

Are Reemployment Services Effective? Experimental Evidence from the Great Recession

We examine an experimental‐design reemployment program implemented in Nevada during the Great Recession that required Unemployment Insurance (UI) recipients to: (1) undergo an eligibility review to confirm they were qualified for benefits and actively searching for work and, if deemed eligible, (2) receive job‐counseling services. Our results show that the program expedited participant exit from UI, produced UI savings that exceeded program costs, and improved participant employment outcomes. Analyses of program effects on the UI exit likelihood show that the program's effects are partly associated with increased participant exit up through the time when program activities were scheduled, reflecting voluntary exit of participants from UI to avoid program activities and disqualifications of participants who failed to meet eligibility requirements. In addition, the program induced substantial participant exit from UI in the period after participants fulfilled requirements and their interactions with the program had ended, suggesting that the job‐counseling services offered by the program may have helped participants to conduct more effective job searches. Our findings provide evidence that reemployment programs that combine an eligibility review with mandatory participation in job‐search services can be effective during recessions.     

Cheap and Dirty: The Effect of Contracting Out Cleaning on Efficiency and Effectiveness

Contracting out of public services, especially ancillary services, has been a key feature of New Public Management since the 1980s. By 2014, more than £100 billion of U.K. public services were being contracted out annually to the private sector. A number of high‐profile cases have prompted a debate about the value for money that these contracts provide. Value for money comprises both the cost and the quality of the services. This article empirically tests the contestability and quality shading hypotheses of contracting out in the context of cleaning services in the English National Health Service. Additionally, a new hypothesis of coupling is presented and tested: the effect of contracting of ancillary services on patient health outcomes, using the hospital‐acquired infection rate as our measure. Using data from 2010–11 to 2013–14 for 130 National Health Service trusts, the study finds that private providers are cheaper but dirtier than their in‐house counterparts.     

How Pro‐social Motivation Affects Job Satisfaction: An International Analysis of Countries with Different Welfare State Regimes

Employees' pro‐social motivation has been shown to be positively related to job satisfaction, especially when the perceived usefulness of the job to society and other people is high. There is, however, a lack of analyses which include both public and private employees, and it has not yet been studied whether the relationships are robust across welfare state regimes. This study therefore examines the moderated relationship between pro‐social motivation and job satisfaction. Using data from the cross‐national 2005 ISSP survey (14 countries, N = 10,630), it confirms that the relationship between pro‐social motivation and job satisfaction is moderated by perceived usefulness of the job for society and other people. Usefulness again depends on the individual's employment sector (public versus private), and this public–private difference in perceived usefulness also varies between different welfare state regimes. This indicates that sector differences in how pro‐social motivation affects job satisfaction depends on the broader institutional context, and the article therefore contributes with important knowledge for the recruitment and retention of motivated and satisfied employees in a period of changing public–private responsibilities in the provision of welfare services.     

Do Job Corps performance measures track program impacts?

Since the 1993 Government Performance and Results Act, performance measurement systems based on short‐term program outcomes have been increasingly used to assess the effectiveness of federal programs. This paper examines the association between program performance measures and long‐term program impacts, using nine‐year follow‐up data from a recent large‐scale, national experimental evaluation of Job Corps, the nation's largest federal job training program for disadvantaged youths. Job Corps is an important test case because it uses a comprehensive performance system that is widely emulated. We find that impacts on key outcomes are not associated with measured center performance levels. Participants in higherperforming centers had better outcomes; however, the same pattern holds for comparable controls. Thus, the performance measurement system is not achieving the goal of ranking and rewarding centers on the basis of their ability to improve participant outcomes relative to what these outcomes would have been otherwise. © 2008 by the Association for Public Policy Analysis and Management.     

Competitive Tendering and Contracting in the Australian Public Sector

The Hilmer reforms, and recent reports from the Industry Commission, advocate a significant shift toward competitive tendering for Australian public services. This article discusses the policy debate in the light of recent developments in the economic theory of contracts.
It will be argued that, although more intense competition can, on some occasions, generate apparent efficiency gains, it can also generate efficiency losses. Following Stigler, it will be argued that the general tendency for competition to generate cost reductions may be explained in terms of increased work intensity, and does not therefore involve a net social welfare gain. Such issues will be examined in relation to the Industry Commission (1995b) draft report on Competitive Tendering and Contracting by Public Sector Agencies, with particular attention to the issue of net social welfare benefits of contracting out. It is suggested that the Industry Commission estimates of efficiency gains available through contracting out are based on an incomplete sample, ignore the social transfer implied in reducing costs and are unlikely to hold for many sections of the public sector.     

The road to economic self‐sufficiency: Job quality and job transition patterns after welfare reform

This paper analyzes the relationships of schooling, the skill content of work experience, and different types of employment patterns with less‐skilled women's job quality outcomes. Survey data from employers and longitudinal data from former and current welfare recipients are used for the period 1997 to early 2002. The analysis of job quality is broadened beyond employment rates and wages measured at a point in time by including non‐wage attributes of compensation and aspects of jobs that affect future earnings potential. This study shows the extent to which lack of employment stability, job skills, and occupation‐specific experience impedes welfare recipients' abilities to obtain a “good job” or to transition into one from a “bad job.” The business cycle downturn has significantly negatively affected the job quality and job transition patterns of former and current recipients. © 2003 by the Association for Public Policy Analysis and Management.     

Contract–Management Capacity in Municipal and County Governments

Under pressure to do more with less, governments across the country have moved from direct service provision to providing services by contract. Proponents argue that contracting can reduce costs and improve flexibility and customer satisfaction. Critics point to a growing number of failed contracts, arguing there are numerous pitfalls associated with contracting. Missing from these debates is a discussion of how governments' managerial capacity can improve contract performance. In this article, we identify specific capacities that governments can use to harness the promise of contracting while avoiding its pitfalls. We present analyses of data on municipal and county government contracting activities that show how governments invest in contract– management capacity in response to several internal and external threats to effective contract performance. Because government investment in contract–management capacity is uneven—that is, some governments invest in less capacity even when circumstances would call for more—our analyses may help to explain why some contract arrangements are more successful than others.     

Information Shocks and the Take‐Up of Social Programs

The causes of participation in social programs have been studied extensively, with prominent roles found for program rules and benefits. A lack of information about these programs has been suggested as a cause of low participation rates among certain groups, but it is often difficult to distinguish between the role of information sharing and other features of a neighborhood, such as factors that are common to people of the same ethnicities or socioeconomic opportunities, or uniquely local methods of program implementation. We seek to gain new insight into the potential role of information flows by investigating what happens when information is disrupted. We exploit rich microdata from Florida vital records and program participation files to explore declines in Women, Infants, and Children (WIC) participation during pregnancy among foreign‐born Hispanics in the “information shock” period surrounding welfare reform. We identify how the size of these reductions is affected by having a high density of neighbors from the same place of origin. Specifically, we compare changes in WIC participation among Hispanic immigrants living in neighborhoods with a larger concentration of own‐origin immigrants to those with a smaller concentration of own‐origin immigrants, holding constant the size of the immigrant population and the share of immigrants in the neighborhood who are Hispanic. We find strong evidence that having a denser network of own‐origin immigrants mediated the information shock faced by immigrant women in the wake of welfare reform.