Job Placement via Private vs. Public Employment Agencies: Investigating Selection Effects and Job Match Quality in Germany
Christian Grund and
Lisa Pütz ()
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Lisa Pütz: RWTH Aachen University
No 14024, IZA Discussion Papers from Institute of Labor Economics (IZA)
Employment agencies aim to match individuals to appropriate jobs. There are public and private employment agencies, which co-exist in many countries. Selection effects may be relevant in the sense that private agencies potentially engage in 'cream-skimming' by prioritizing highly qualified workers. The resulting job match quality is also important from an individual, a firm, and a society perspective. We examine the selection into job placement via private and public employment agencies as well as the resulting job match qualities, taking a job-market reform in Germany into account: the introduction of placement vouchers for private job placements. Using representative German panel data, we find that cream-skimming is significantly less pronounced under the voucher policy, as private agencies shift the focus toward unemployed individuals with a voucher. In addition, we find evidence based on propensity score matching estimations that private agencies tend to create better matches than their public counterparts.
Keywords: public employment agency; private employment agencies; job search; job placement; job match quality; cream-skimming; selection; vouchers (search for similar items in EconPapers)
JEL-codes: J64 L33 M5 (search for similar items in EconPapers)
Pages: 30 pages
New Economics Papers: this item is included in nep-eur and nep-lab
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Forthcoming - forthcoming in: Schmalenbach Journal of Business Research
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Working Paper: Job Placement via Private vs. Public Employment Agencies: Investigating Selection Effects and Job Match Quality in Germany (2021)
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