Growing the Productivity of Government Services

Growing the Productivity of Government Services

Patrick Dunleavy and Leandro Carrera

Productivity is essentially the ratio of an organization’s outputs divided by its inputs. For many years it was treated as always being static in government agencies. In fact productivity in government services should be rising rapidly as a result of digital changes and new management approaches, and it has done so in some agencies. However, Dunleavy and Carrera show for the first time how complex are the factors affecting productivity growth in government organizations – especially management practices, use of IT, organizational culture, strategic mis-decisions and political and policy churn.

Data and methods

Patrick Dunleavy and Leandro Carrera

Subjects: economics and finance, public finance, public sector economics, politics and public policy, public policy, social policy and sociology, comparative social policy

Extract

SOCIAL SECURITY PRODUCTIVITY For the main outputs series for the 1997–08 to 2007–08 series we relied on information provided by the Department for Work and Pensions (DWP) from its own productivity work and covering a total of 14 benefits. These include both the number of benefits paid (load) and the number of new applications for benefits processed (claims): Each benefit was weighted according to the total costs of administering each benefit. Weighted benefits were then added and converted into a total index of output. Benefits analysed for 1999 to 2008 period Both load and claim measures unless otherwise stated: Income Support Jobseeker’s Allowance Social Fund Payments Incapacity Benefit Other Working Age Benefits Carers’ Allowance State Pension Minimum Income Guarantee (until 2003) Pension Credit (after 2003) International Pension Credit Future Pension Forecasts Attendance Allowance Child Support Benefit (here we used Disability Living Allowance a DWP measure for the number of children benefiting) The index of total inputs for the 1997 to 2008 total factor productivity (TFP) analysis was based on deflated expenditure data (pay, procurement and capital) from the DWP (and before that the Department of Social Security, DSS) for the period under analysis. Specific deflators were used to deflate each expenditure components. These components were then 329 M3049 - DUNLEAVY 9780857934987 PRINT.indd 329 17/12/2012 09:11 330 Growing the productivity of government services Table A.1 Staff numbers in the Department for Work and Pensions, and before 2001 in the Department of Social Security, in FTEs Year 1997/ 1998/...

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