Public-Private Partnerships in Labour Markets

Abstract

The paper considers the role of Public-Private Partnerships (PPPs) in the labor market issues. PPP consists of the collaboration between private agent(s) and the public sector in order to achieve a specific goal. There are many examples of partnerships between public and private agents in key areas such as infrastructure, healthcare and education, but PPP has not been sufficiently developed in the context of the labor market. This paper is structured into three parts: an economic analysis of PPP, examples of the most relevant PPPs in several different countries (with in-depth descriptions of successful examples) and recommendations. The economic analysis motivates and gives importance to PPP in labor affairs. The economic reasons for the public sector's intervention in the labor market originate from market failures and society's need for an equality that the private sector cannot afford. However, the public intervention process also generates some undesirable indirect effects. PPP is an effective instrument to solve any market and management failures deriving from public provision of services. The best way to understand how PPPs work in practice is by looking at the different types of PPP undertaken; and considering interesting cases in significant (developed) countries. The examples concompany the mixture of PPPs depending on the economic situation and institutional framework of the country. The combination of a theoretical and practical economic approach allows us to present recommendations on how the human resources (HR) sector should tackle the dynamic, changing environment through the use of PPPs. Terms like "globalization", "flexicurity" and "personalization" have to be on the main agenda of policymakers and HR professionals through the succesful creation process of the PPPs.

Keywords: Labor market, Public-Private Partnership