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Short and Long Term Evaluations of Public Employment Services in Italy

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  • Paolo Naticchioni
  • Silvia Loriga

Abstract

In the last decade the European Employment Strategy strongly recommended reforms of active labour market policies, reforms that have generated a spread of evaluation exercises for most of European countries. This paper fills the gap in the literature concerning the Italian case, assessing the efficacy of Public Employment Services (PESs)—after the reforms of 1997, 2000, 2003—in increasing the unemployment to employment transition probabilities, through matching techniques. Exploiting the longitudinal dimension of the Labour Force Survey data we design an evaluation structure that allows observing outcomes in both the short (at most 3 months) and the long run (at most 12 and 15 months). In this framework, PES users show a lower probability of finding a job in the short term, because of a lock-in effect, while in the long term this probability turns out to be positive. We also show that PES effects in the long term are much less pronounced when considering as outcome variable the probability of finding a permanent job, a proxy for the quality of the job, suggesting that PES impacts are to a large extent driven by the use of temporary contracts. Furthermore, to deal with issues related to selection on unobservables we carry out two different sensitivity analysis, which confirm our baseline findings.

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Bibliographic Info

Article provided by Duncker & Humblot, Berlin in its journal Applied Economics Quarterly.

Volume (Year): 57 (2011)
Issue (Month): 3 ()
Pages: 201-229

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Handle: RePEc:aeq:aeqaeq:v57_y2011_i3_q3_p_201-229

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Related research

Keywords: Public Employment Services; Active Labour Market Policies; European Employment Strategy; Matching; Policy Evaluation; Italy;

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References

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  1. Wunsch, Conny & Lechner, Michael, 2007. "What Did All the Money Do? On the General Ineffectiveness of Recent West German Labour Market Programmes," IZA Discussion Papers 2800, Institute for the Study of Labor (IZA).
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  7. Richard Blundell & Lorraine Dearden & Barbara Sianesi, 2005. "Evaluating the effect of education on earnings: models, methods and results from the National Child Development Survey," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 168(3), pages 473-512.
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  11. Sianesi, Barbara, 2002. "Differential effects of Swedish active labour market programmes for unemployed adults during the 1990s," Working Paper Series 2002:5, IFAU - Institute for Evaluation of Labour Market and Education Policy.
  12. Peter Fredriksson & Per Johansson, 2003. "Program Evaluation and Random Program Starts," CESifo Working Paper Series 844, CESifo Group Munich.
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  18. Heckman, James J & Ichimura, Hidehiko & Todd, Petra, 1998. "Matching as an Econometric Evaluation Estimator," Review of Economic Studies, Wiley Blackwell, vol. 65(2), pages 261-94, April.
  19. Black, Dan A. & Smith, J.A.Jeffrey A., 2004. "How robust is the evidence on the effects of college quality? Evidence from matching," Journal of Econometrics, Elsevier, vol. 121(1-2), pages 99-124.
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Cited by:
  1. M. Deidda & A. Di Liberto & M. Foddi & G. Sulis, 2012. "Employment Subsidies, Informal Economy and Women’s Transition into Work in a Depressed Area: Evidence from a Matching Approach," Working Paper CRENoS 201216, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.

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