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Public or private job placement services — Are private ones more effective?

Author

Listed:
  • Gesine Stephan

    (IAB, Friedrich-Alexander Universität Erlangen-Nürnberg (FAU), and IZA, Germany)

Abstract

Expenditures on job placement and related services make up a substantial share of many countries’ gross domestic products. Contracting out to private providers is often proposed as a cost-efficient alternative to the state provision of placement services. However, the responsible state agency has to be able and willing to design and monitor sufficiently complete contracts to ensure that the private contractors deliver the desired service quality. None of the empirical evidence indicates that contracting-out is necessarily more effective or more cost-efficient than public employment services.

Suggested Citation

  • Gesine Stephan, 2024. "Public or private job placement services — Are private ones more effective?," World of Labour, LISER, pages 2852-2852, May.
  • Handle: RePEc:iza:izawol:journl:2024:n:285v2
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    Cited by:

    1. Hernæs, Øystein M., 2025. "Performance pay for private program providers and impact on participants: A field experiment with employment services in Norway," Labour Economics, Elsevier, vol. 95(C).

    More about this item

    Keywords

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    JEL classification:

    • L33 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Comparison of Public and Private Enterprise and Nonprofit Institutions; Privatization; Contracting Out
    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy
    • J65 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment Insurance; Severance Pay; Plant Closings
    • H44 - Public Economics - - Publicly Provided Goods - - - Publicly Provided Goods: Mixed Markets
    • H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs

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