This article focuses on the contracting-out of Public Employments Services. Quasi-markets promise to deliver more efficient, effective and de-bureaucratised employment services. By comparing experiences from Holland, Australia and Denmark we investigate whether quasi-markets deliver on promises. Quasi-market models have difficulties in living up to the preconditions for a well-functioning market and political expectations. Efficiency gains and cost-savings are still largely unknown. Instead it is clear that quasi-markets create a new type of employment policy, and new conditions for governing the labour market and employment policy. Clouded in the ‘technical’ language of improved efficiency and effectiveness, such changes are often neglected and depoliticised.

Among scholars and practitioners, there is a growing recognition of the important role of employers in the success of active labour market policies in Europe. However, there is a lack of systematic evidence about why and how employers engage in active labour market policies. In this article, the preferences and behaviour of employers towards active labour market policies are untangled. A typology of four types of employers is constructed for analytical and empirical analysis. By distinguishing positive and negative preferences from participation and non-participation, four types of employers are identified: the committed employer, the dismissive employer, the sceptical employer and the passive employer. The utility of the typology is tested with survey data on employer engagement in Danish ALMPs. The findings indicate that only a minority of Danish employers can be classified as ‘committed employers’, and the majority are either ‘dismissive’ or ‘passive’ employers. In the final section, this finding and the usefulness of the typology for analytical and empirical research is discussed.

PurposeThe purpose of the article is to analyse the interconnections between formal policy reforms and operational policies, specifically between new governance and employment policy. The main question is what happens to public employment policies when they are contracted out to non‐public (for‐profit and not‐for‐profit) agencies?Design/methodology/approachThe case is the contracting out of the public employment services in Australia, Holland, and Denmark. The data consists of in‐depth interviews with key respondents in the three countries, observations at service delivery agencies, and desk studies of existing research.FindingsThe new quasi‐market models seem to have difficulties in living up to the preconditions for a well‐functioning market, as well as political expectations. Contracted out employment systems do not seem to create higher efficiency, innovation, quality, and less bureaucracy than previous public bureaucracies. But a quasi‐market model, on the other hand, does seems to create a new type of employment policy, and new conditions for steering and governing the labour market and employment policy. This implies that choosing a quasi‐market model involves much more than a discussion about “technicalities” like (cost) efficiency and productivity. Some of the most important – but often neglected and depoliticised – policy changes seem to emerge from changes of the institutional set‐up rather than changes of specific laws and ministerial orders.Originality/valueThe article is innovative in trying to identify relationships between management structure and policy content. Often these changes are analysed in separate disciplines, and isolated from each other. In this article we provide an integrated and multidisciplinary approach.

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In order to make informed and legitimate decisions in labour market policies, European and national policy makers need better knowledge of what type of interventions works for whom. The European Commission and many Member States have high hopes that ‘experimental evaluation’ techniques (such as randomised controlled experiments, systematic meta-analysis and econometric outcome evaluations) will deliver solid and clear evidence to inform the development of more rational decision-making processes. This article reviews the evaluation literature on Active Labour Market Policy (ALMP) and examines what works for whom, under what circumstances. It assesses the strengths and weaknesses of the current drive towards ‘experimental evaluation’ and proposes an integrated framework for ALMP evaluation that combines ‘experimental evaluation’ with ‘programme theory evaluations' and quantitative with qualitative data collection.