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Measuring the effectiveness of Public Employment Service (PES) workers; an empirical analysis based on the performance outcomes of regional employment offices

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  • Pierre Koning

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Abstract

In this paper, we measure the effectiveness of the Dutch public employment service (PES) for various performance measures, ranging from outflow rates to the timeliness of the benefits allocation. Using unique administrative monthly data from local PES offices during 2004, we exploit the fact that the number of PES workers per job seeker varies substantially between offices. We find additional PES workers to significantly increase outflow rates for short term unemployed and unemployment insurance (UI) recipients. In contrast, no effects are obtained for the outflow rates of long term unemployed and social assistance (SA) recipients. We also find additional PES workers to reduce the inflow into the schemes, to improve the timeliness of UI benefits and to increase the number of vacancies that are registered by offices. Although the effectiveness of PES workers is limited, we conclude that changes in the number of PES workers per client are cost-effective - that is, the extra costs are compensated for by the resulting reduction in benefit expenses.

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Bibliographic Info

Paper provided by CPB Netherlands Bureau for Economic Policy Analysis in its series CPB Discussion Paper with number 73.

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Date of creation: Dec 2006
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Handle: RePEc:cpb:discus:73

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  1. John P. Martin, 1998. "What Works Among Active Labour Market Policies: Evidence From OECD Countries' Experiences," OECD Labour Market and Social Policy Occasional Papers 35, OECD Publishing.
  2. Burgess, Simon & Propper, Carol & Ratto, Marisa & Tominey, Emma, 2012. "Incentives in the Public Sector: Evidence from a Government Agency," IZA Discussion Papers 6738, Institute for the Study of Labor (IZA).
  3. Petrongolo, Barbara & Pissarides, Christopher, 2000. "Looking Into The Black Box: A Survey Of The Matching Function," CEPR Discussion Papers 2409, C.E.P.R. Discussion Papers.
  4. Kluve, Jochen, 2006. "The Effectiveness of European Active Labor Market Policy," IZA Discussion Papers 2018, Institute for the Study of Labor (IZA).
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Cited by:
  1. Arjen de Vetten, 2007. "Incentives and Regional Coordination in Employment Services," CPB Memorandum 190, CPB Netherlands Bureau for Economic Policy Analysis.
  2. Alexander Murray, 2010. "The State of Knowledge on the Role and Impact of Labour Market Information: A Survey of the International Evidence," CSLS Research Reports 2010-05, Centre for the Study of Living Standards.

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