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Effects of public employment services on labor transitions: an analysis for the Spanish case

Author

Listed:
  • Patricia Suárez
  • Begoña Cueto
  • Matías Mayor

Abstract

Purpose - – The purpose of this paper is to evaluate the influence of public employment services (PES) on transitions from unemployment. Design/methodology/approach - – The likelihood of exit from unemployment is explained by a multinomial logit model which takes into account the target state of the transition (unemployment, employment or inactivity). In order to analyze the unobserved heterogeneity, the model has been estimated using a Generalized Linear Latent and Mixed Models. Findings - – The analysis suggests that the contribution of PES to improving labor market outcomes is low in the case of transitions to employment. Nevertheless, PES play an important role in workforce dropout prevention. Practical implications - – The results suggest that redesign and modernization are needed to improve PES performance. More intensive job counselling should be provided so that PES get beyond workforce dropout prevention and start having clear positive effects on placement. Target groups should be defined more clearly so as to ensure sustainable transitions for individuals at risk of exclusion. PES should focus on the most disadvantaged jobseekers and those who need more help to get jobs. Originality/value - – First, the results highlight the role PES play in reducing inactivity rates. Second, this is the first study in Spain that uses Labor Force Survey (LFS) data to evaluate PES in a dynamic framework. The LFS is the only data source which allows us to relate people registered unemployed to people considered unemployed by international standards.

Suggested Citation

  • Patricia Suárez & Begoña Cueto & Matías Mayor, 2014. "Effects of public employment services on labor transitions: an analysis for the Spanish case," International Journal of Manpower, Emerald Group Publishing Limited, vol. 35(7), pages 996-1015, September.
    • Handle: RePEc:eme:ijmpps:v:35:y:2014:i:7:p:996-1015
    DOI: 10.1108/IJM-05-2014-0109
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    Citations

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    Cited by:

    1. 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.
    2. Baños, José F. & Rodríguez-Álvarez, Ana & Suárez, Patricia, 2016. "Matching frontiers: A random parameter model approach," Efficiency Series Papers 2016/07, University of Oviedo, Department of Economics, Oviedo Efficiency Group (OEG).
    3. 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.

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