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Can the modernisation of a public employment service be an effective labour market intervention? The Hungarian experience, 2004-2008

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  • Zsombor Cseres-Gergely

    (Institute of Economics, CERS, Hungarian Academy of Sciences)

Abstract

The Public Employment Service often delivers much of the employment policy including active labour market programmes in many member states in the EU, yet we know little about its effectiveness in general. This paper provides a quantitative assessment of the potential impact of the modernisation programme of the Hungarian Public Employment service between 2004 and 2008. Using data at the level of local offices, I calculate programme effects using a difference-in-difference estimator. Results show that the programme has increased re-employment rates significantly, by 6%. The modernisation was thus a moderately effective but relatively inexpensive intervention, similar in terms of cost-effectiveness to the better active labour market programmes in Hungary.

Suggested Citation

  • Zsombor Cseres-Gergely, 2012. "Can the modernisation of a public employment service be an effective labour market intervention? The Hungarian experience, 2004-2008," European Journal of Government and Economics, Europa Grande, vol. 1(2), pages 145-162, December.
  • Handle: RePEc:egr:ejge00:v:1:i:2:p:145-162
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    References listed on IDEAS

    as
    1. Christopher A. Pissarides, 2000. "Equilibrium Unemployment Theory, 2nd Edition," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262161877, January.
    2. David Card & Jochen Kluve & Andrea Weber, 2010. "Active Labour Market Policy Evaluations: A Meta-Analysis," Economic Journal, Royal Economic Society, vol. 120(548), pages 452-477, November.
    3. Kluve, Jochen, 2010. "The effectiveness of European active labor market programs," Labour Economics, Elsevier, vol. 17(6), pages 904-918, December.
    4. George B. Baldwin, 1951. "Tulamusa: A Study of the Place of the Public Employment Service," ILR Review, Cornell University, ILR School, vol. 4(4), pages 509-526, July.
    5. James J. Heckman & Hidehiko Ichimura & Petra Todd, 1998. "Matching As An Econometric Evaluation Estimator," Review of Economic Studies, Oxford University Press, vol. 65(2), pages 261-294.
    6. Bruttel, Oliver, 2005. "Contracting-out and governance mechanisms in the public employment service," Discussion Papers, Research Unit: Labor Market Policy and Employment SP I 2005-109, Social Science Research Center Berlin (WZB).
    7. Edwin Leuven & Barbara Sianesi, 2003. "PSMATCH2: Stata module to perform full Mahalanobis and propensity score matching, common support graphing, and covariate imbalance testing," Statistical Software Components S432001, Boston College Department of Economics, revised 01 Feb 2018.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    older workers; youth employment; labour demand; public sector;

    JEL classification:

    • J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • J45 - Labor and Demographic Economics - - Particular Labor Markets - - - Public Sector Labor Markets

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