The Employment Effect of Reforming a Public Employment Agency

Andrey Launov () and Klaus Waelde ()
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Klaus Waelde: Department of Economics, Johannes Gutenberg-Universitaet Mainz; Department of Economics (IRES), Universite catholique de Louvain; CESifo, Center for Economic Studies
Authors registered in the RePEc Author Service: Klaus Wälde

No 1507, Working Papers from Gutenberg School of Management and Economics, Johannes Gutenberg-Universität Mainz

Abstract: 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 ex- plains 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.

Keywords: Employment agencies; unemployment benefits; labour market reform; unemployment; structural model (search for similar items in EconPapers)
JEL-codes: E24 J65 J68 (search for similar items in EconPapers)
Pages: 42 pages
Date: 2015-08-18, Revised 2015-08-18
New Economics Papers: this item is included in nep-mac
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Citations: View citations in EconPapers (3)

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https://download.uni-mainz.de/RePEc/pdf/Discussion_Paper_1507.pdf First version, 2015 (application/pdf)

Related works:
Journal Article: The employment effect of reforming a public employment agency (2016)
Working Paper: The Employment Effect of Reforming a Public Employment Agency (2015)
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Persistent link: https://EconPapers.repec.org/RePEc:jgu:wpaper:1507

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