Skip to main content

LUP Student Papers

LUND UNIVERSITY LIBRARIES

The Social Cost of Efficiency? New Public Management, Crime and Unemployment in Sweden

Klose, Elias LU (2025) NEKH04 20251
Department of Economics
Abstract
This paper examines whether Sweden's shift towards New Public Management (NPM) has
affected unemployment and crime rates at the municipal level. Using panel data from 290
Swedish municipalities (1995–2021) and a regression discontinuity design, I test whether
left-wing governance (as a proxy for lower NPM adoption) impacts these social outcomes.
Results show that narrower left-wing coalition governance (Social Democrats+Left Party)
significantly reduces unemployment in the short term, while broader left-wing governance
(including the Green Party) shows no significant effect on unemployment but is associated with
increased crime rates over time. The relationship between unemployment and crime showed
mixed results. These findings... (More)
This paper examines whether Sweden's shift towards New Public Management (NPM) has
affected unemployment and crime rates at the municipal level. Using panel data from 290
Swedish municipalities (1995–2021) and a regression discontinuity design, I test whether
left-wing governance (as a proxy for lower NPM adoption) impacts these social outcomes.
Results show that narrower left-wing coalition governance (Social Democrats+Left Party)
significantly reduces unemployment in the short term, while broader left-wing governance
(including the Green Party) shows no significant effect on unemployment but is associated with
increased crime rates over time. The relationship between unemployment and crime showed
mixed results. These findings suggest that ideological governance approaches have measurable
socioeconomic consequences, with implications for understanding the long-term effects of
market-oriented public sector reforms in the Swedish context. (Less)
Please use this url to cite or link to this publication:
author
Klose, Elias LU
supervisor
organization
course
NEKH04 20251
year
type
M2 - Bachelor Degree
subject
keywords
Unemployment, Crime, New Public Management
language
English
id
9196038
date added to LUP
2025-09-12 09:22:58
date last changed
2025-09-12 09:22:58
@misc{9196038,
  abstract     = {{This paper examines whether Sweden's shift towards New Public Management (NPM) has
affected unemployment and crime rates at the municipal level. Using panel data from 290
Swedish municipalities (1995–2021) and a regression discontinuity design, I test whether
left-wing governance (as a proxy for lower NPM adoption) impacts these social outcomes.
Results show that narrower left-wing coalition governance (Social Democrats+Left Party)
significantly reduces unemployment in the short term, while broader left-wing governance
(including the Green Party) shows no significant effect on unemployment but is associated with
increased crime rates over time. The relationship between unemployment and crime showed
mixed results. These findings suggest that ideological governance approaches have measurable
socioeconomic consequences, with implications for understanding the long-term effects of
market-oriented public sector reforms in the Swedish context.}},
  author       = {{Klose, Elias}},
  language     = {{eng}},
  note         = {{Student Paper}},
  title        = {{The Social Cost of Efficiency? New Public Management, Crime and Unemployment in Sweden}},
  year         = {{2025}},
}