The short-run and long-run effects of decentralizing public employment services

Michael Weber

No 209, ifo Working Paper Series from ifo Institute - Leibniz Institute for Economic Research at the University of Munich

Abstract: A German policy experiment from 2012 allows me to identify the short-run and longrun causal effects of decentralization on the placement efficiency of public employment services (PES). I exploit variation over time and across districts with different types of PES in a difference-in-differences framework. Decentralization had significant negative effects on placements in the short run, but not in the long run. This points to a transition process, during which caseworkers acquire relevant placement skills. Decentralization also had a persistent negative effect on sanctions on the welfare recipients, which probably indicates a reluctance of local authorities to reduce the well-being of their potential voters.

Keywords: Public employment services; job placement; matching efficiency; difference-in-differences (search for similar items in EconPapers)
JEL-codes: C21 E24 J48 (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (2)

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