Public procurement and labour market inequality: Conceptualising a multi-faceted relationship

Abstract

Over the past few decades, policymakers have become increasingly intrigued by public procurement's potential to serve as a policy tool. In line with an increased prevalence of attempts to leverage public procurement for promoting employment-related goals, a growing body of research explores the linkages between public procurement and employment. Yet, while different aspects of the procurement process influence labour market outcomes and the linkages are multiple, current research focuses on individual aspects only. As a result, current understandings of the linkage between public procurement and its labour market effects remain fragmented. Considering choices between the initial identification of an object of purchase and the award and delivery of the contract, this article conceptualises the multi-faceted linkages between public procurement and labour market inequalities understood as issues of access to and (in)equality in employment. It argues that three key aspects (the design of the object, requirements set in the process of buying, and the type of provider) make distinct contributions to the overall impact that procurement processes have on labour market inequality and outlines a framework for analysing the implications of choices at these three core decision points.