Municipalities as competitors
Municipalities as competitors
Original title: Analyse af det danske realkreditsystem
A recent public inquiry has looked into the question of whether it is lawful and warranted that municipalities offer employment services on the market, which are procured by the Swedish Employment Office.
Although the inquiry concludes that it indeed is lawful, it does a poor job in describing the negative consequences of such a reform. Some of the identified competition problems are not addressed with appropriate measures at all, others are handled with reforms that have previously proven hard to implement in practise.
The main conclusions of our study are that the inquiry:
Was not commissioned to address the key question: whether it is warranted that municipalities should offer employment search services
Only partly identifies the likely competition problems
Presents remedies that are either insufficient or practically not possible to implement to solve the obvious competition problems
Fails to analyse the consequences of the diverging incentives of private suppliers and municipalities in the market
The study was commissioned by Almega and The Swedish Confederation of Enterprise.
Read the study in Swedish below.
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