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Choice and competition in the welfare state: home care as the ideal quasi-market
Södertörn University, Huddinge, Sweden.ORCID iD: 0000-0001-5026-9479
Research Institute of Industrial Economics (IFN), Stockholm, Sweden.ORCID iD: 0000-0001-8857-6116
Umeå University, Faculty of Social Sciences, Umeå School of Business and Economics (USBE), Economics.ORCID iD: 0000-0001-6094-9099
2018 (English)Report (Other academic)
Abstract [en]

We study a reform by which a standardized model of choice and competition was introduced in tax-financed home care in a majority of Swedish municipalities. The market for home care is of particular interest since it is close to the ideal quasi-market. For identification, we exploit the different timing of reform implementation across municipalities. We find that the introduction of free choice and free entry in home care increased perceived quality by about one quarter of a standard deviation without affecting costs. Since satisfaction is unrelated to the private market share, the underlying mechanism seems to be new choice opportunities rather than competition or an advantage of private providers.

Place, publisher, year, edition, pages
Stockholm: Research Institute of Industrial Economics (IFN) , 2018. , p. 20
Series
IFN Working Paper ; 1213
Keywords [en]
Choice, competition, privatization, elderly care, new public management
National Category
Economics
Identifiers
URN: urn:nbn:se:umu:diva-219613OAI: oai:DiVA.org:umu-219613DiVA, id: diva2:1828828
Funder
The Jan Wallander and Tom Hedelius Foundation
Note

JEL Codes: H42, H75, I11, L33

Available from: 2024-01-17 Created: 2024-01-17 Last updated: 2024-01-19Bibliographically approved

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Bergman, Mats A.Jordahl, HenrikLundberg, Sofia

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CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf