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Do public employment services improve employment outcomes? Evidence from Colombia

Author

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  • Pignatti, Clemente.

Abstract

The paper assesses the effects of participation in the Public Employment Service (PES) in Colombia by means of propensity score matching. The results show that participating in the PES increases the probability of having a formal (rather than informal) job. Around two thirds of this effect is related to the fact that PES participants are generally placed in larger companies. By contrast, participation in the PES has a negative effect on hourly wages. This derives from a positive effect on the wages of the low-skilled and a negative effect on the wages of the high-skilled. For both formal employment and wages, the PES has a more positive effect when the services are provided face-to-face rather than online. The results are robust to (i) changes in the matching algorithm; (ii) modifications in the area of common support; and (iii) possible presence of unobserved heterogeneity.

Suggested Citation

  • Pignatti, Clemente., 2016. "Do public employment services improve employment outcomes? Evidence from Colombia," ILO Working Papers 994904833402676, International Labour Organization.
    • Handle: RePEc:ilo:ilowps:994904833402676
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    Cited by:

    1. Verónica Escudero & Jochen Kluve & Elva López Mourelo & Clemente Pignatti, 2019. "Active Labour Market Programmes in Latin America and the Caribbean: Evidence from a Meta-Analysis," Journal of Development Studies, Taylor & Francis Journals, vol. 55(12), pages 2644-2661, December.
    2. Antonia Asenjo & Verónica Escudero & Hannah Liepmann, 2024. "Why Should we Integrate Income and Employment Support? A Conceptual and Empirical Investigation," Journal of Development Studies, Taylor & Francis Journals, vol. 60(1), pages 1-29, January.
    3. Ernst, Ekkehard & Merola, Rossana & Reljic, Jelena, 2024. "Fiscal policy instruments for inclusive labour markets: A review," GLO Discussion Paper Series 1406, Global Labor Organization (GLO).
    4. Christopher O'Leary & Tulio Cravo & Ana Cristina Sierra & Leandro Justino, 2022. "Effects of Job Referrals on Labor Market Outcomes in Brazil," Economía Journal, The Latin American and Caribbean Economic Association - LACEA, vol. 0(Spring 20), pages 157-186, June.

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