Private Job Placement Services - a Microeconometric Evaluation for Germany

39 Pages Posted: 25 Apr 2006 Last revised: 26 Aug 2008

See all articles by Henrik Winterhager

Henrik Winterhager

Center for European Economic Research (ZEW)

Date Written: 2006

Abstract

In recent years, coinciding with the discussion led in many OECD countries, Germany has started to contract out placement services for the unemployed to private agencies. Whereas in the Netherlands and Australia the whole system of employment services was reorganized at once, making an econometric evaluation difficult, only a small part of services has been contracted out so far in Germany. In this paper a microeconometric evaluation of this system using propensity score matching is presented. The effects on the employment probabilities of the unemployed are small and negative so far. A theoretical analysis suggests that this might be explained by deficits in the contract management.

Keywords: Job Placement, Contracting Out, Active Labor Market Policy, Matching

JEL Classification: J68, H25

Suggested Citation

Winterhager, Henrik, Private Job Placement Services - a Microeconometric Evaluation for Germany (2006). ZEW - Centre for European Economic Research Discussion Paper No. 06-026. Available at SSRN: https://ssrn.com/abstract=897931 or http://dx.doi.org/10.2139/ssrn.897931

Henrik Winterhager (Contact Author)

Center for European Economic Research (ZEW) ( email )

P.O. Box 10 34 43
L 7,1 D-68161 Mannheim
Germany

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