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An evaluation of the management of the Finnish employment service

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  • Maria Teresa Gonzalo
  • Jan Saarela

Abstract

This paper analyses the efficiency of the Finnish Employment Service's management in selecting unemployed individuals who are offered a job. The database used considers short-term unemployed individuals who face the same labour market conditions in 1996. Duration analysis with a Weibull model has been performed in order to study the determinants of the transition probability from unemployment into employment and the impact of receiving job offers through the Employment Service (ES). In order to carry this out, it has been taken into account that the reception of such job offers may be endogenous because the ES selects the individuals who will receive the offers. The empirical results suggest that the decisions made by the ES are adequate in the sense that they increase the benefit of society, compared with a random assignment of the vacancies offered through the ES. Moreover, the effects of the other determinants depend on whether the individual receives offers. The results also point out that individuals who receive no offers through the ES are more likely, as time passes by, to be discouraged in searching for a job than those who do.

Suggested Citation

  • Maria Teresa Gonzalo & Jan Saarela, 2001. "An evaluation of the management of the Finnish employment service," Applied Economics, Taylor & Francis Journals, vol. 33(13), pages 1717-1725.
  • Handle: RePEc:taf:applec:v:33:y:2001:i:13:p:1717-1725
    DOI: 10.1080/00036840010015354
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    References listed on IDEAS

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    1. Maddala,G. S., 1986. "Limited-Dependent and Qualitative Variables in Econometrics," Cambridge Books, Cambridge University Press, number 9780521338257, May.
    2. Narendranathan, W. & Stewart, M.B., 1989. "Modelling The Probability Of Leaving Unemployment: Competing Risks Models With Flexible Baseline Hazards," The Warwick Economics Research Paper Series (TWERPS) 331, University of Warwick, Department of Economics.
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    Cited by:

    1. Räisänen, Heikki, 2005. "What Kind of Job-broker is the Public Employment Service? Evidence from Finnish Job Vacancy Midrodata in 2002-2003," Discussion Papers 352, VATT Institute for Economic Research.

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