The DEA Method and Its Application Possibilities for Measuring Efficiency in the Public Sector—The Case of Local Public Employment Services

Ewa Cichowicz, Ewa Rollnik-Sadowska, Monika Dędys and Maria Ekes
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Ewa Cichowicz: Financial System Department, SGH Warsaw School of Economics, 02-554 Warsaw, Poland
Ewa Rollnik-Sadowska: Faculty of Engineering Management, Bialystok University of Technology, 15-351 Białystok, Poland
Monika Dędys: Institute of Econometrics, SGH Warsaw School of Economics, 02-554 Warsaw, Poland
Maria Ekes: Department of Mathematics and Mathematical Economics, SGH Warsaw School of Economics, 02-554 Warsaw, Poland

Economies, 2021, vol. 9, issue 2, 1-13

Abstract: Public Employment Services (PES) are identified as important institutions in the process of improving the match between supply and demand in the labor market, which, despite their importance, still do not achieve the desired efficiency. The indicated problem is partly due to the lack of appropriate evaluation methods for the applied labor market policy instruments. This paper aims to verify the possibility of using the two-stage Data Envelopment Analysis (DEA) method in measuring the efficiency of public sector entities. The authors focused on 39 PES operating in Mazovia province, Poland in 2019. In the first stage, the model of technical efficiency of local PES included six variables (four inputs and two outputs). Only seven PES obtained full efficiency. The inefficiency of analyzed PES varied from about 1% to 80%. In the second stage, the attention focuses on the relationship between true unknown efficiency and its determinants (five environmental variables, both demand and supply oriented). Then, the regression coefficients and confidence intervals showed that three out of five variables influence the efficiency results, the share of the long-term unemployed, the share of the unemployed under 30, and the share of the unemployed over 50 in the total number of unemployed.

Keywords: efficiency; DEA method; public policy; labor market; public employment services (search for similar items in EconPapers)
JEL-codes: E F I J O Q (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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