Make or buy? When producing public services, local governments face a choice between in-house production and contracting out to the private sector. Contracting out has become an increasingly utilized tool in public service production across western countries since the wave of New Public Management reforms in the 1980’s and 1990’s, but research literature points to divergent explanations on factors driving this marketization process. This thesis investigates factors behind contracting out in technical and social service areas and explores the significance of variation in time. Drawing on a full panel data set covering spending in all 98 Danish municipalities in the ten-year period from 2008 to 2017, the influence of fiscal pressure, size and ideology is tested alongside a neo-institutional concept of imitation. The results show that while the effect of fiscal pressure is negative across service areas, and the effect of imitation if positive across service areas, the effect of size and ideology vary between technical and social services. This illustrates that service-specific characteristics matter, when local governments decide how to produce public services. Finally, the results show that the effect of explanatory variables are not constant over time, illustrating the complexity of explaining contracting out.
|Uddannelser||Forvaltning, (Bachelor/kandidatuddannelse) Kandidat|
|Vejledere||Ole Helby Petersen|
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