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The employment effect of reforming a public employment agency

Launov, Andrey, Wälde, Klaus (2016) The employment effect of reforming a public employment agency. European Economic Review, 84 . pp. 140-164. ISSN 0014-2921. (doi:10.1016/j.euroecorev.2015.08.008) (KAR id:59495)


By how much does an increase in operating effectiveness of a public employment agency (PEA) and a reduction of unemployment benefits reduce unemployment? Using a recent labour market reform in Germany as background, we find that an enhanced effectiveness of the PEA explains about 20% of the observed post-reform unemployment decline. The role of unemployment benefit reduction explains just about 5% of the observed decline. Due to disincentive effects resulting from the reform, the reform of the PEA could have had an even higher impact on unemployment reduction if there had been less focus on long-term unemployed workers.

Item Type: Article
DOI/Identification number: 10.1016/j.euroecorev.2015.08.008
Uncontrolled keywords: Employment agencies; Unemployment benefits; labour market reform; Unemployment; Structural model
Subjects: H Social Sciences
Divisions: Divisions > Division of Human and Social Sciences > School of Economics
Depositing User: Andrey Launov
Date Deposited: 06 Dec 2016 17:51 UTC
Last Modified: 09 Dec 2022 03:58 UTC
Resource URI: (The current URI for this page, for reference purposes)

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