This result only gains strength if the diversity in labor market is controlled for differences in the RLMC essential-task conditions, that is, the general level of unemployment and the share of long-term unemployment (more than two years' unemployment; cf.
A recent Danish study that compares regional labor-market policy by the RLMC with labor-market policy by the municipalities--the government layer below the county level--supports this proposition (Jepsen, Norgaard, and Vinderslev 2002).
In contrast the RLMCs do not produce labor-market services for the unemployed.
Extra resources were allocated if the RLMCs exceeded the already boosted budgets (cf.
Our indicators tend to underestimate rather than overestimate diversity across the RLMCs.
The RLMCs provide but do not produce activation services themselves and thus do not make staff decisions.