Hevenstone, Debra; Fraser, Alec; Hobi, Lukas Christian; Wojtek, Przepiorka; Geuke, Gemma G. M. (2023). The impact of social impact bond financing Public Administration Review, 83(4), pp. 930-946. Wiley-Blackwell 10.1111/puar.13631
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Public Administration Review - 2023 - Hevenstone - The impact of social impact bond financing.pdf - Published Version Available under License Creative Commons: Attribution (CC-BY). Download (1MB) | Preview |
Social impact bonds (SIBs), also known as Pay for Success, are an innovation in Payment by Results contracting. Investors finance programs and are repaid based on the “SIB effect,” which includes changes in outcomes attributable to financing. We generate a quantitative estimate of this part of the SIB effect for two active labor market programs in the Netherlands and Switzerland. Comparing program impacts within providers using SIB and non-SIB contracts suggests financing has positive impacts on public benefit receipt, employment, and income. Qualitative research suggests this is because SIB contracts increased pressure for all involved parties, leading to the institutionalization of selection and greater resources for SIB-financed services. Contracts with high pressure, like SIBs, may compromise both performance requirements and the potential to measure performance. We examine the implications of these findings in relation to agency and stewardship theories and highlight the significance of SIBs as multilateral as opposed to bilateral contracts.
Item Type: |
Journal Article (Original Article) |
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Division/Institute: |
School of Social Work > Institute for Social Security and Social Policy School of Social Work |
Name: |
Hevenstone, Debra; Fraser, Alec; Hobi, Lukas Christian; Wojtek, Przepiorka and Geuke, Gemma G. M. |
Subjects: |
H Social Sciences > HA Statistics H Social Sciences > HJ Public Finance H Social Sciences > HN Social history and conditions. Social problems. Social reform |
ISSN: |
0033-3352 |
Publisher: |
Wiley-Blackwell |
Funders: |
[UNSPECIFIED] Swiss Network for International Studies |
Language: |
English |
Submitter: |
Debra Hevenstone |
Date Deposited: |
09 May 2023 15:12 |
Last Modified: |
09 Jul 2023 01:37 |
Publisher DOI: |
10.1111/puar.13631 |
ARBOR DOI: |
10.24451/arbor.19213 |
URI: |
https://arbor.bfh.ch/id/eprint/19213 |
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