The Trade-off between Flexibility and Accountability in Labour Market Policy

Abstract

Labour market policy is in most countries a national priority that requires national co-ordination. Its perceived importance and the financial volume of expenditure for labour market policy place limits on the degree of flexibility for regional or local actors that is politically acceptable. Moreover, potential conflicts of interest between local and national employment service actors are an important justification for centralised rules and regulations in labour market policy. Decentralised systems frequently face problems in performance accountability due in particular to the number of organisations involved and the lack of standardisation in labour market and performance data available.

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