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Making the Public Employment Service More Effective through the Introduction of Market Signals

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  • Robert G. Fay

Abstract

Many OECD countries have taken steps to increase competition in areas that have been typically dominated by public monopolies in the past. The goal is to improve the production and delivery of public goods and services. Among these areas, governments have introduced market signals to make the public employment service (PES) contestable in some of its activities in order to improve its effectiveness. This has involved i) liberalisation of the rules and regulations governing private employment agencies; ii) the use of market-type mechanisms (MTMs) such as contracting-out; and iii) organisational reforms, for example separating purchasers and providers of services to jobseekers.Separating purchasers and providers is an important requirement to make the delivery of public services contestable. For example, if the PES provides training and also purchases it on the open market, it may have the incentive to deal with only one segment of the market, making it difficult to compare its ...

Suggested Citation

  • Robert G. Fay, 1997. "Making the Public Employment Service More Effective through the Introduction of Market Signals," OECD Labour Market and Social Policy Occasional Papers 25, OECD Publishing.
    • Handle: RePEc:oec:elsaaa:25-en
    DOI: 10.1787/031348351683
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    Cited by:

    1. Bruttel, Oliver, 2005. "Die Privatisierung der öffentlichen Arbeitsvermittlung : Erfahrungen aus Australien, den Niederlanden und Großbritannien (The privatisation of public employment services * experiences made in Australi," Zeitschrift für ArbeitsmarktForschung - Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 38(1), pages 7-29.
    2. 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.
    3. John Burgess, 2003. "Reviewing the model behind the job network," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 6(2), pages 227-240, June.
    4. Bruttel, Oliver, 2002. "Die Privatisierung der öffentlichen Arbeitsverwaltung am Beispiel Australiens," Discussion Papers, Research Unit: Labor Market Policy and Employment FS I 02-214, WZB Berlin Social Science Center.
    5. Gaby Ramia & Terry Carney, 2003. "New Public Management, the Job Network and Non-Profit Strategy," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 6(2), pages 253-275, June.
    6. Bruttel, Oliver, 2005. "Die Privatisierung der öffentlichen Arbeitsvermittlung : Erfahrungen aus Australien, den Niederlanden und Großbritannien (The privatisation of public employment services * experiences made in Australi," Zeitschrift für ArbeitsmarktForschung - Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 38(1), pages 7-29.
    7. Bruttel, Oliver, 2005. "Die Privatisierung der öffentlichen Arbeitsvermittlung : Erfahrungen aus Australien, den Niederlanden und Großbritannien (The privatisation of public employment services * experiences made in Australi," Zeitschrift für ArbeitsmarktForschung - Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 38(1), pages 7-29.
    8. Zsombor Cseres-Gergely, 2012. "Can the modernisation of a public employment service be an effective labour market intervention? The Hungarian experience, 2004-2008," European Journal of Government and Economics, Europa Grande, vol. 1(2), pages 145-162, December.
    9. 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.
    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. Knotz, Carlo Michael, 2012. "Measuring the 'new balance of rights and responsibilities' in labor market policy: A quantitative overview of activation strategies in 20 OECD countries," Working papers of the ZeS 06/2012, University of Bremen, Centre for Social Policy Research (ZeS).
    12. Martin, John P. & Grubb, David, 2001. "What works and for whom: a review of OECD countries' experiences with active labour market policies," Working Paper Series 2001:14, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    13. Bernhard, Sarah & Wolff, Joachim, 2008. "Contracting out placement services in Germany : is assignment to private providers effective for needy job-seekers?," IAB-Discussion Paper 200805, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].

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