Robert M. La Follette School of Public Affairs

Creaming-Skimming, Parking and Other Intended and Unintended Effects of Performance-Based Contracting in Social Welfare Services

The authors' analysis finds that government-contracted private providers of job placement services in the Netherlands tend to focus on helping clients who are the easiest to place, a practice known as cream-skimming, when the providers are engaged through fully performance-contingent contracts. In addition, making contract payments fully contingent on performance appears to increase job placements, but not job duration, for more readily employable workers.

Additional Info

  • Volume or issue no.: La Follette School Working Paper No. 2010-021
  • Author(s): Pierre Koning and Carolyn J. Heinrich