This study empirically investigates the efficacy of marketization in welfare. Marketization was introduced to the field of welfare by enforcing the long-term care insurance scheme in Korea. By conducting semi-structured interviews with the eight long-term care service providers, this study analyzes effects experienced by different types of providers, including profit and non-profit, as well as institutional and in-home service providers. The study employs five indicators to systematically evaluate impact, including efficiency, responsiveness, choice, equity, and service quality. Results show that: (1) efficiency was improved in both public and private providers; (2) in case of the public providers, responsiveness was reduced due to equity collateral, whilst on the other hand, both institutional and in-home services from private providers were improved; (3) the range of choice was reduced in the case of institutional service providers; (4) equity was improved in both the public and private providers by income, although legitimate competition was not stimulated among institutional service providers; and (5) service quality was improved or maintained among all providers. In conclusion, this study indicates that marketization of welfare led to different effects among various types of service providers. More detailed investigation is required to verify its efficacy.
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