Should Government Go It Alone or With a Partner? A Comparison of Outcomes from a Work Release Program Using Different Policy Tools

Abstract

This article compares labor market outcomes from two different approaches to a work release program in Illinois: direct provision by a government and a purchase-of-service (POS) contract between government and a public charity. Significantly better employment and earnings outcomes were associated with the POS contract. To better understand the reasons for the success of the POS contract, the authors further examined the specific terms of the contract, organizational expertise, and the political context of POS contracts. The results are organized according to the main theoretical assertions. Findings add to the weight of evidence that contractors, like public charities, can be valuable government partners for addressing challenging social policies and programs. Evidence for Practice Relational norms complement the written contract to improve contracting performance. Commitment to resources and political support may improve contracting performance. Public agencies can control contracting through explicit and implicit measures.