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Employment Service: Public or Private?

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  • Zweifel, Peter
  • Zaborowski, Christoph

Abstract

This paper deals with the relative performance of private and public employment services. For this purpose, two behavioral models are developed which take into account that private and public employment agents not only pursue different aims but also face different restrictions, in particular since a public employment agency lacks the right to reject applicants. While analysis of the necessary optimality conditions yields tentative conclusions about the advantages and disadvantages of both types of employment service, empirically testable hypotheses result from the predicted responses to increases in unemployment and in the cost of service, respectively These predicted behaviors are likely to be considered unfair by society, causing dissatisfaction with both private and public employment agencies. Copyright 1996 by Kluwer Academic Publishers

Suggested Citation

  • Zweifel, Peter & Zaborowski, Christoph, 1996. "Employment Service: Public or Private?," Public Choice, Springer, vol. 89(1-2), pages 131-162, October.
    • Handle: RePEc:kap:pubcho:v:89:y:1996:i:1-2:p:131-62
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    Cited by:

    1. Sandra M. Leitner, 2023. "Occupational Trajectories Among Refugees in Austria: The Role of Co-ethnic and Austrian Social Networks in Job Search," wiiw Working Papers 232, The Vienna Institute for International Economic Studies, wiiw.
    2. Kübler, Dorothea, 1997. "Using private job agencies: Optimal screening or cream skimming?," SFB 373 Discussion Papers 1997,53, Humboldt University of Berlin, Interdisciplinary Research Project 373: Quantification and Simulation of Economic Processes.
    3. Constantin Mang, 2012. "Online Job Search and Matching Quality," ifo Working Paper Series 147, ifo Institute - Leibniz Institute for Economic Research at the University of Munich.
    4. Stefan Jestl & Michael Landesmann & Sebastian Leitner & Sandra M. Leitner & Isilda Mara & Maryna Tverdostup, 2023. "wiiw Studies on the Integration of Middle Eastern Refugees in Austria, Based on FIMAS Surveys and Register-based Labour Market Career Data," wiiw Policy Notes 74, The Vienna Institute for International Economic Studies, wiiw.
    5. 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.
    6. 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.
    7. Rehwald, Kai & Rosholm, Michael & Svarer, Michael, 2015. "Are Public or Private Providers of Employment Services More Effective? Evidence from a Randomized Experiment," IZA Discussion Papers 9365, Institute of Labor Economics (IZA).

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