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(In)Efficiency of Matching - the Case of a Post-transition Economy

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  • Tomasz Jeruzalski

    ()
    (Faculty of Economic Sciences, University of Warsaw)

  • Joanna Tyrowicz

    ()
    (Faculty of Economic Sciences, University of Warsaw)

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 have also combined 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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File URL: http://www.wne.uw.edu.pl/inf/wyd/WP/WNE_WP20.pdf
File Function: First version, 2009
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Bibliographic Info

Paper provided by Faculty of Economic Sciences, University of Warsaw in its series Working Papers with number 2009-10.

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Length: 27 pages
Date of creation: 2009
Date of revision:
Handle: RePEc:war:wpaper:2009-10

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Keywords: matching function; stochastic frontier; Poland;

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References

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  1. Hagen, Tobias, 2003. "Three Approaches to the Evaluation of Active Labour Market Policy in East Germany Using Regional Data," ZEW Discussion Papers, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research 03-27, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  2. Calmfors, Lars & Forslund, Anders & Hemström, Maria, 2002. "Does Active Labour Market Policy Work? Lessons from the Swedish Experiences," Seminar Papers, Stockholm University, Institute for International Economic Studies 700, Stockholm University, Institute for International Economic Studies.
  3. 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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  9. 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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  19. Calmfors, Lars & Skedinger, Per, 1995. "Does Active Labour-Market Policy Increase Employment? Theoretical Considerations and Some Empirical Evidence from Sweden," Oxford Review of Economic Policy, Oxford University Press, Oxford University Press, vol. 11(1), pages 91-109, Spring.
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  22. David Katrencik & Joanna Tyrowicz & Piotr Wójcik, 2008. "Unemployment Convergence in Transition," Working Papers, Faculty of Economic Sciences, University of Warsaw 2008-07, Faculty of Economic Sciences, University of Warsaw.
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  25. Wilson, Paul & Hadley, David & Asby, Carol, 2001. "The influence of management characteristics on the technical efficiency of wheat farmers in eastern England," Agricultural Economics, Blackwell, Blackwell, vol. 24(3), pages 329-338, March.
  26. Jekaterina Dmitrijeva & Mihails Hazans, 2007. "A Stock-Flow Matching Approach to Evaluation of Public Training Programme in a High Unemployment Environment," LABOUR, CEIS, CEIS, vol. 21(3), pages 503-540, 09.
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  28. 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.
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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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