IDEAS home Printed from https://ideas.repec.org/a/kap/pubcho/v101y1999i1-2p85-107.html
   My bibliography  Save this article

Coexistence of Public and Private Job Agencies: Screening with Heterogeneous Institutions

Author

Listed:
  • Kubler, Dorothea

Abstract

In response to the analysis of bureaucracies and the finding of inherent inefficiencies, public choice theory argues for an increase in competition by contracting out government services and deregulation. The paper explores the effect of coexisting public and private employment services in a model with private information of the worker about her ability and unobservable effort choice. The employer's use of an efficient unemployment exchange and an efficient private agency may lead to optimal screening with first best contracts. This is due to the assumption that good types of workers lose more human capital than bad types in periods of unemployment or mismatch. In contrast to standard screening contracts, a bad type of worker earns an information rent if the employment exchange is inefficient, but the employer chooses not to use the private agency for good types. Copyright 1999 by Kluwer Academic Publishers

Suggested Citation

  • Kubler, Dorothea, 1999. "Coexistence of Public and Private Job Agencies: Screening with Heterogeneous Institutions," Public Choice, Springer, vol. 101(1-2), pages 85-107, October.
    • Handle: RePEc:kap:pubcho:v:101:y:1999:i:1-2:p:85-107
    as

    Download full text from publisher

    File URL: http://journals.kluweronline.com/issn/0048-5829/contents
    File Function: link to full text
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Maté Fodor, 2016. "Essays on Education, Wages and Technology," ULB Institutional Repository 2013/239691, ULB -- Universite Libre de Bruxelles.
    2. Twisha Chatterjee, 2018. "A model of search and matching with PES intermediation," Eurasian Economic Review, Springer;Eurasia Business and Economics Society, vol. 8(1), pages 1-36, April.
    3. Hung‐Yang Lin & Shu‐Jung Li & Hui‐Fen Hung, 2014. "A Good Strategy to Pull the Needy Out of Poverty? Contracting Out the Public Employment Services for the Poor in Taiwan," Poverty & Public Policy, John Wiley & Sons, vol. 6(3), pages 308-328, September.
    4. Woong Lee, 2009. "Private Deception and the Rise of Public Employment Offices in the United States, 1890-1930," NBER Chapters, in: Studies of Labor Market Intermediation, pages 155-181, National Bureau of Economic Research, Inc.
    5. Alfred M. DOCKERY & Thorsten STROMBACK, 2001. "Devolving public employment services: Preliminary assessment of the Australian experiment," International Labour Review, International Labour Organization, vol. 140(4), pages 429-451, December.
    6. Marcos Singer, 2005. "Evaluacion Del Sistema Publico De Intermediacion Laboral Y De Su Oportunidad De Privatizacion," Abante, Escuela de Administracion. Pontificia Universidad Católica de Chile., vol. 8(2), pages 37-58.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kap:pubcho:v:101:y:1999:i:1-2:p:85-107. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.