Public Employment Services and Employers: How Important are Networks with Firms?

IZA Discussion Paper No. 3005

University of St. Gallen, Department of Economics, Discussion Paper No. 2007-33

40 Pages Posted: 11 Sep 2007

See all articles by Stefanie Behncke

Stefanie Behncke

IZA Institute of Labor Economics; Swiss National Bank

Markus Frölich

Universität Mannheim, Chair of Econometrics

Michael Lechner

University of St. Gallen - Swiss Institute for Empirical Economic Research

Date Written: September 2007

Abstract

This paper examines whether contacts between caseworkers in public employment offices and employers impact on the reemployment chances of the unemployed they counsel. This analysis is made possible through a large administrative dataset on unemployed combined with an extensive survey of caseworkers' characteristics and their strategies. This data was created for evaluating public employment services in Switzerland. We use econometric techniques from the treatment evaluation literature to identify causal effects of a more intense employer focus of the caseworkers. The estimation results indicate that caseworkers who maintain direct contacts to firms achieve higher reintegration rates.

Keywords: public employment services, new public management, employer focus

JEL Classification: J68

Suggested Citation

Behncke, Stefanie and Frölich, Markus and Lechner, Michael, Public Employment Services and Employers: How Important are Networks with Firms? (September 2007). IZA Discussion Paper No. 3005; University of St. Gallen, Department of Economics, Discussion Paper No. 2007-33. Available at SSRN: https://ssrn.com/abstract=1012582

Stefanie Behncke

IZA Institute of Labor Economics ( email )

Bonn, D-53072

Swiss National Bank ( email )

Financial Stability
Bundesplatz 1
Bern, 3003
Switzerland

Markus Frölich

Universität Mannheim, Chair of Econometrics ( email )

L7, 3-5
68131 Mannheim
D-Mannheim, 68131
Germany

HOME PAGE: http://froelich.vwl.uni-mannheim.de

Michael Lechner (Contact Author)

University of St. Gallen - Swiss Institute for Empirical Economic Research ( email )

Varnbuelstrasse 14
St. Gallen, 9000
Switzerland
+41 71 224 2320 (Phone)

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