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(In)Efficiency of Matching - The Case of A Post-transition Economy

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  • Jeruzalski, Tomasz
  • Tyrowicz, Joanna

Abstract

This paper approaches the question of efficiency in job placement using regional data for Polish regions (policy relevant NUTS 4 level) over the time span of 2000-2008. Using a unique data set we estimate the matching function using stochastic frontier as well as difference-in-difference estimators. We use also managed to combine this unique data set with another unique source of data on the ALMPs coverage, unemployment structure across time and regions as well as the individual capacity of local labour offices. We use these data to explain the exceptional variation in estimated efficiency scores. Our findings suggest that matching abilities are highly driven by demand fluctuations, while unemployment structure, ALMPs and individual labour office capacities have little explanatory power. Although without individual data it is fairly impossible to provide a reliable counterfactual, we raise some arguments to support the claim of job placement inefficiency by public employment services in Poland.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 16598.

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Date of creation: 03 Aug 2009
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Handle: RePEc:pra:mprapa:16598

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Keywords: matching function; stochastic frontier; Poland;

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References

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  1. repec:fth:iniesr:429 is not listed on IDEAS
  2. Christopher A. Pissarides & Barbara Petrongolo, 2001. "Looking into the Black Box: A Survey of the Matching Function," Journal of Economic Literature, American Economic Association, American Economic Association, vol. 39(2), pages 390-431, June.
  3. Munich, Daniel & Svejnar, Jan, 2007. "Unemployment in East and West Europe," Labour Economics, Elsevier, Elsevier, vol. 14(4), pages 681-694, August.
  4. Ibourk, Aomar & Maillard, Bénédicte & Perelman, Sergio & Sneessens, Henri R., 2001. "The Matching Efficiency of Regional Labour Markets: A Stochastic Production Frontier Estimation, France 1990-1995," IZA Discussion Papers 339, Institute for the Study of Labor (IZA).
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  16. Gregg, Paul & Petrongolo, Barbara, 2005. "Stock-flow matching and the performance of the labor market," European Economic Review, Elsevier, Elsevier, vol. 49(8), pages 1987-2011, November.
  17. Puhani, Patrick A., 1999. "Estimating the effects of public training on Polish unemployment by way of the augmented matching function approach," ZEW Discussion Papers, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research 99-38, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
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  20. Melvyn Coles & Barbara Petrongolo, 2003. "A Test Between Unemployment Theories Using Matching Data," CEP Discussion Papers, Centre for Economic Performance, LSE dp0570, Centre for Economic Performance, LSE.
  21. Jekaterina Dmitrijeva & Mihails Hazans, 2005. "A stock-flow matching approach to evaluation of public training program in a high unemployment environment," Labor and Demography, EconWPA 0506007, EconWPA.
  22. Vassiliev, Anatoli & Ferro Luzzi, Giovanni & Fluckiger, Yves & Ramirez, Jose V., 2006. "Unemployment and employment offices' efficiency: What can be done?," Socio-Economic Planning Sciences, Elsevier, Elsevier, vol. 40(3), pages 169-186, September.
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  28. Katrencik, David & Tyrowicz, Joanna & Wojcik, Piotr, 2008. "Unemployment Convergence in Transition," MPRA Paper 15386, University Library of Munich, Germany.
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Cited by:
  1. Iva Tomic, 2012. "The Efficiency of the Matching Process: Exploring the Impact of Regional Employment Offices in Croatia," Working Papers, The Institute of Economics, Zagreb 1204, The Institute of Economics, Zagreb.

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