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The Efficiency of Public Employment Services: A Nonparametric Matching Function Analysis for Switzerland

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  • George Sheldon

Abstract

This study develops a methodology for assessing the efficiency of job placement services based on the matching function. Unlike most previous estimates of the matching function, based on aggregate time-series regressions and parametric functional forms, this study employs micro cross-sectional data and uses nonparametric frontier estimation techniques (DEA). The methodology is applied to 126 regional placement offices operating in Switzerland in the period 1997–98. In contrast to time-series regressions, our results point to sizable increasing returns-to-scale. Our findings also suggest that counseling is more effective than other active labor market measures or disciplining actions in increasing matching efficiency. Copyright Kluwer Academic Publishers 2003

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  • George Sheldon, 2003. "The Efficiency of Public Employment Services: A Nonparametric Matching Function Analysis for Switzerland," Journal of Productivity Analysis, Springer, vol. 20(1), pages 49-70, July.
    • Handle: RePEc:kap:jproda:v:20:y:2003:i:1:p:49-70
    DOI: 10.1023/A:1024870108435
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    1. Suárez Cano, Patricia & Mayor Fernández, Matías & Cueto Iglesias, Begoña, 2011. "How important is access to employment offices in Spain? An urban and non-urban perspective," INVESTIGACIONES REGIONALES - Journal of REGIONAL RESEARCH, Asociación Española de Ciencia Regional, issue 21, pages 119-140.
    2. Stefanie Behncke & Markus Frölich & Michael Lechner, 2008. "A Caseworker Like Me - Does The Similarity Between Unemployed And Caseworker Increase Job Placements?," University of St. Gallen Department of Economics working paper series 2008 2008-08, Department of Economics, University of St. Gallen.
    3. Stefanie Behncke & Markus Frölich & Michael Lechner, 2010. "Unemployed and their caseworkers: should they be friends or foes?," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 173(1), pages 67-92, January.
    4. Patricia Suárez & Matías Mayor & Begoña Cueto, 2012. "The accessibility to employment offices in the Spanish labour market," Papers in Regional Science, Wiley Blackwell, vol. 91(4), pages 823-848, November.
    5. Galanopoulos, Konstantinos & Aggelopoulos, Stamatis & Kamenidou, Irene & Mattas, Konstadinos, 2006. "Assessing the effects of managerial and production practices on the efficiency of commercial pig farming," Agricultural Systems, Elsevier, vol. 88(2-3), pages 125-141, June.
    6. Dario Sciulli & António Gomes de Menezes, 2018. "The performance of Portuguese job-centers," EKONOMIAZ. Revista vasca de Economía, Gobierno Vasco / Eusko Jaurlaritza / Basque Government, vol. 93(01), pages 108-133.
    7. Stefanie Behncke & Markus Frölich & Michael Lechner, 2007. "Public Employment Services and Employers: How Important are Networks with Firms?," University of St. Gallen Department of Economics working paper series 2007 2007-33, Department of Economics, University of St. Gallen.
    8. 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, vol. 40(3), pages 169-186, September.
    9. Marwa Sahnoun & Chokri Abdennadher, 2018. "The assessment of active labor market policies: evidence from OECD countries," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 35(2), pages 257-283, August.
    10. Michael Weber, 2016. "The short-run and long-run effects of decentralizing public employment services," ifo Working Paper Series 209, ifo Institute - Leibniz Institute for Economic Research at the University of Munich.
    11. John T. Addison & Martin Altemeyer-Bartscher & Thomas Kuhn, 2011. "The Dilemma of Delegating Search: Budgeting in Public Employment Service," Professional Reports 02_11, Rimini Centre for Economic Analysis.
    12. Ewa Cichowicz & Ewa Rollnik-Sadowska & Monika Dędys & Maria Ekes, 2021. "The DEA Method and Its Application Possibilities for Measuring Efficiency in the Public Sector—The Case of Local Public Employment Services," Economies, MDPI, vol. 9(2), pages 1-13, May.
    13. Addison, John T. & Altemeyer-Bartscher, Martin & Kuhn, Thomas, 2010. "The Dilemma of Delegating Search: Budgeting in Public Employment Services," IZA Discussion Papers 5170, Institute of Labor Economics (IZA).
    14. Baños, José F. & Rodríguez-Álvarez, Ana & Suárez, Patricia, 2016. "Matching frontiers: A random parameter model approach," Efficiency Series Papers 2016/07, University of Oviedo, Department of Economics, Oviedo Efficiency Group (OEG).
    15. Althin, Rikard & Behrenz, Lars & Färe, Rolf & Grosskopf, Shawna & Mellander, Erik, 2010. "Swedish employment offices: A new model for evaluating effectiveness," European Journal of Operational Research, Elsevier, vol. 207(3), pages 1535-1544, December.
    16. Suárez Cano, Patricia & Mayor Fernández, Matías & Cueto Iglesias, Begoña, 2012. "La eficiencia de los servicios públicos de empleo en España en un escenario descentralizado: un análisis desde la perspectiva de la oferta/Efficiency of Public Employment Services in Spain in a Decent," Estudios de Economia Aplicada, Estudios de Economia Aplicada, vol. 30, pages 757(22)-757, Agosto.
    17. Dyballa, Katharina & Kraft, Kornelius, 2020. "(In)Efficiency of Employment Offices: A Study on Welfare Benefits Determination – Is There a Trade-off between Time Saving Case Management and Quality of Decisions?," IZA Discussion Papers 13399, Institute of Labor Economics (IZA).
    18. José V. Ramirez & Anatoli Vassiliev, 2007. "An Efficiency Comparison of Regional Employment Offices Operating under Different Exogenous Conditions," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), vol. 143(I), pages 31-48, March.

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