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Private and Public Placement Services for Hard-to-Place Unemployed

Author

Listed:
  • Gerhard Krug
  • Gesine Stephan

Abstract

The authors analyze a randomized field experiment in two German labor market agencies that provide public and private provision of intensive job placement services. The findings, based on analysis of administrative agency data over 18 months in 2009–2010, show that assignment to public employment services reduced accumulated days in unemployment by one to two months, compared to an assignment to a private provider. The effects, however, were short-lived. Moreover, two-thirds of the effect is attributable to labor force withdrawals. Finally, several important differences in the modes of service provision are only partially attributable to inherent aspects of in-house production and contracting out.

Suggested Citation

  • Gerhard Krug & Gesine Stephan, 2016. "Private and Public Placement Services for Hard-to-Place Unemployed," ILR Review, Cornell University, ILR School, vol. 69(2), pages 471-500, March.
    • Handle: RePEc:sae:ilrrev:v:69:y:2016:i:2:p:471-500
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    Citations

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    Cited by:

    1. Eichhorst, Werner & Konle-Seidl, Regina, 2016. "Evaluating Labour Market Policy," IZA Discussion Papers 9966, Institute of Labor Economics (IZA).
    2. Gerard J. van den Berg & Christine Dauth & Pia Homrighausen & Gesine Stephan, 2023. "Informing employees in small and medium‐sized firms about training: Results of a randomized field experiment," Economic Inquiry, Western Economic Association International, vol. 61(1), pages 162-178, January.
    3. Adam Ayaita & Christian Grund & Lisa Pütz, 2021. "Job Placement via Private vs. Public Employment Agencies: Investigating Selection Effects and Job Match Quality in Germany," SOEPpapers on Multidisciplinary Panel Data Research 1121, DIW Berlin, The German Socio-Economic Panel (SOEP).
    4. Fredrik Andersson & Henrik Jordahl & Jens Josephson, 2019. "Outsourcing Public Services: Contractibility, Cost, and Quality," CESifo Economic Studies, CESifo Group, vol. 65(4), pages 349-372.
    5. René Böheim & Rainer Eppel & Helmut Mahringer, 2023. "The impact of lower caseloads in public employment services on the unemployed," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 57(1), pages 1-25, December.
    6. Briscese, Guglielmo & Leibbrandt, Andreas, 2022. "Designing the market for job vacancies: A trust experiment with employment centers staff," Labour Economics, Elsevier, vol. 78(C).
    7. Gesine Stephan, 2016. "Public or private job placement services—Are private ones more effective?," IZA World of Labor, Institute of Labor Economics (IZA), pages 285-285, August.
    8. Danula K. Gamage & Pedro S. Martins, 2018. "Evaluating Public-Private Partnerships in Employment Services: The Case of the UK Work Programme," Working Papers 87, Queen Mary, University of London, School of Business and Management, Centre for Globalisation Research.
    9. Altmann, Steffen & Mahlstedt, Robert & Rattenborg, Malte Jacob & Sebald, Alexander, 2023. "Which Occupations Do Unemployed Workers Target? Insights from Online Job Search Profiles," IZA Discussion Papers 16696, Institute of Labor Economics (IZA).
    10. Adam Ayaita & Christian Grund & Lisa Pütz, 2022. "Job Placement via Private vs. Public Employment Agencies: Investigating Selection Effects and Job Match Quality in Germany," Schmalenbach Journal of Business Research, Springer, vol. 74(2), pages 137-162, June.

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