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Private Job Placement Services: A Microeconometric Evaluation for Germany

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  • Winterhager, Henrik

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.

Suggested Citation

  • Winterhager, Henrik, 2006. "Private Job Placement Services: A Microeconometric Evaluation for Germany," ZEW Discussion Papers 06-026, ZEW - Leibniz Centre for European Economic Research.
    • Handle: RePEc:zbw:zewdip:4610
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    Citations

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    Cited by:

    1. Tomasz Gajderowicz & Maciej Jakubowski, 2019. "What works for disadvantaged unemployed: Private or public ALMP services? Evidence from (unplanned) RCT in Poland," Working Papers 2019-04, Faculty of Economic Sciences, University of Warsaw.
    2. Heyer, Gerd & Koch, Susanne & Stephan, Gesine & Wolff, Joachim, 2012. "Evaluation der aktiven Arbeitsmarktpolitik: Ein Sachstandsbericht für die Instrumentenreform 2011 (Evaluation of active labor market programs : a summary of recent results for the German program refor," Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 45(1), pages 41-62.
    3. Danula K. Gamage & Pedro S. Martins, 2018. "Evaluating Public-Private Partnerships in Employment Services: The Case of the UK Work Programme," Working Papers 87, Queen Mary, University of London, School of Business and Management, Centre for Globalisation Research.
    4. Bart Cockx & Stijn Baert, 2015. "Contracting Out Mandatory Counselling and Training for Long-Term Unemployed. Private For-Profit or Non-Profit, or Keep it Public?," CESifo Working Paper Series 5587, CESifo.
    5. Pfeiffer, Friedhelm & Winterhager, Henrik, 2006. "Vermittlungsgutscheine und Beauftragungen Dritter im Vergleich (Job placement vouchers and the contracting out of placement services compared)," Zeitschrift für ArbeitsmarktForschung - Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 39(3/4), pages 425-445.
    6. Krug, Gerhard & Stephan, Gesine, 2013. "Is the Contracting-Out of Intensive Placement Services More Effective than Provision by the PES? Evidence from a Randomized Field Experiment," IZA Discussion Papers 7403, Institute of Labor Economics (IZA).
    7. Bennmarker, Helge & Grönqvist, Erik & Öckert, Björn, 2013. "Effects of contracting out employment services: Evidence from a randomized experiment," Journal of Public Economics, Elsevier, vol. 98(C), pages 68-84.
    8. Pfeiffer, Friedhelm & Winterhager, Henrik, 2006. "Vermittlungsgutscheine und Beauftragungen Dritter im Vergleich (Job placement vouchers and the contracting out of placement services compared)," Zeitschrift für ArbeitsmarktForschung - Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 39(3/4), pages 425-445.
    9. Bennmarker, Helge & Grönqvist, Erik & Öckert, Björn, 2009. "Effects of outsourcing employment services: evidence from a randomized experiment," Working Paper Series 2009:23, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    10. Bernhard, Sarah & Wolff, Joachim & Jozwiak, Eva, 2006. "Selektivität bei der Zuweisung erwerbsfähiger Hilfebedürftiger in Trainingsmaßnahmen oder zu privaten Vermittlungsdienstleistern (What determines the assignment of means-tested unemployment benefit II," Zeitschrift für ArbeitsmarktForschung - Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 39(3/4), pages 533-556.
    11. Krister Sund, 2015. "Did the Introduction of Private Contractors Improve Turnover to Employment in the Swedish Labor Market?," Journal of Labor Research, Springer, vol. 36(4), pages 389-408, December.
    12. 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).
    13. Gerd Heyer & Susanne Koch & Gesine Stephan & Joachim Wolff, 2012. "Evaluation der aktiven Arbeitsmarktpolitik: Ein Sachstandsbericht für die Instrumentenreform 2011," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 45(1), pages 41-62, March.
    14. Bernhard, Sarah & Wolff, Joachim & Jozwiak, Eva, 2006. "Selektivität bei der Zuweisung erwerbsfähiger Hilfebedürftiger in Trainingsmaßnahmen oder zu privaten Vermittlungsdienstleistern (What determines the assignment of means-tested unemployment benefit II," Zeitschrift für ArbeitsmarktForschung - Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 39(3/4), pages 533-556.
    15. Bernhard, Sarah & Hohmeyer, Katrin & Jozwiak, Eva & Koch, Susanne & Kruppe, Thomas & Stephan, Gesine & Wolff, Joachim, 2008. "Aktive Arbeitsmarktpolitik in Deutschland und ihre Wirkungen," IAB-Forschungsbericht 200802, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    16. Bernhard, Sarah & Wolff, Joachim & Jozwiak, Eva, 2006. "Selektivität bei der Zuweisung erwerbsfähiger Hilfebedürftiger in Trainingsmaßnahmen oder zu privaten Vermittlungsdienstleistern (What determines the assignment of means-tested unemployment benefit II," Zeitschrift für ArbeitsmarktForschung - Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 39(3/4), pages 533-556.
    17. Rehwald, Kai & Rosholm, Michael & Svarer, Michael, 2017. "Do public or private providers of employment services matter for employment? Evidence from a randomized experiment," Labour Economics, Elsevier, vol. 45(C), pages 169-187.
    18. Julia Bock-Schappelwein & Andrea Egger-Subotitsch & Michael Flotzinger & Gabriele Schmied, 2021. "Vermittlungsaktivitäten der PES in Zeiten von COVID-19," WIFO Studies, WIFO, number 71447.

    More about this item

    Keywords

    Job Placement; Contracting Out; Active Labor Market Policy; Matching;
    All these keywords.

    JEL classification:

    • H25 - Public Economics - - Taxation, Subsidies, and Revenue - - - Business Taxes and Subsidies
    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy

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