Public or private job placement services — Are private ones more effective?

Gesine Stephan

IZA World of Labor, 2024, No 285v2, 285v2

Abstract: Expenditures on job placement and related services make up a substantial share of many countries’ gross domestic products. Contracting out to private providers is often proposed as a cost-efficient alternative to the state provision of placement services. However, the responsible state agency has to be able and willing to design and monitor sufficiently complete contracts to ensure that the private contractors deliver the desired service quality. None of the empirical evidence indicates that contracting-out is necessarily more effective or more cost-efficient than public employment services.

Keywords: unemployment; employment services; privatization; contracting out (search for similar items in EconPapers)
JEL-codes: H44 H53 J65 J68 L33 (search for similar items in EconPapers)
Date: 2024
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