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The efficiency of public employment services: a matching frontiers approach

Author

Listed:
  • Jose F. Baños
  • Ana Rodriguez-Alvarez
  • Patricia Suarez-Cano

Abstract

Purpose - This paper aims to model the efficiency of labour offices belonging to the public employment services (PESs) in Spain using a stochastic matching frontier approach. Design/methodology/approach - With this aim in mind, the authors apply a random parameter model approach to control for observed and unobserved heterogeneity. Findings - Results indicate that when the information criteria of the estimates are analysed, it improves by controlling both, observed and unobserved heterogeneity in the inefficiency term. Also, results suggest that counsellors improve the productivity of labour offices and that the share of unemployed skilled persons, unemployed persons aged 44 or younger, as well as the share of unemployed persons in the construction sector, all affect the technical efficiency of PESs offices. Originality/value - The model extends the previous specifications in the matching literature that capture only observed heterogeneity. Moreover, as far as the authors know, it is the first paper that estimates a matching frontier for the Spanish case. Finally, the database they use is at the office level and includes the work carried out by counsellors, which is a novelty in the analysis of this type of studies at the Spanish level.

Suggested Citation

  • Jose F. Baños & Ana Rodriguez-Alvarez & Patricia Suarez-Cano, 2019. "The efficiency of public employment services: a matching frontiers approach," Applied Economic Analysis, Emerald Group Publishing Limited, vol. 27(81), pages 169-183, August.
    • Handle: RePEc:eme:aeapps:aea-06-2019-0006
    DOI: 10.1108/AEA-06-2019-0006
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    Citations

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    Cited by:

    1. Ewa Cichowicz & Ewa Rollnik-Sadowska & Monika Dędys & Maria Ekes, 2021. "The DEA Method and Its Application Possibilities for Measuring Efficiency in the Public Sector—The Case of Local Public Employment Services," Economies, MDPI, vol. 9(2), pages 1-13, May.
    2. Alic Birca, 2023. "The Public Employment Service – the "Catalyst" for Connecting Employers and the Unemployed in the Labour Market," Ovidius University Annals, Economic Sciences Series, Ovidius University of Constantza, Faculty of Economic Sciences, vol. 0(1), pages 256-264, August.

    More about this item

    Keywords

    Technical efficiency; Labour offices; Matching functions; Observed and unobserved heterogeneity; Job seekers; J24; J45; J64;
    All these keywords.

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J45 - Labor and Demographic Economics - - Particular Labor Markets - - - Public Sector Labor Markets
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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