Public employment services under decentralization: Evidence from a natural experiment
Annual Conference 2017 (Vienna): Alternative Structures for Money and Banking from Verein für Socialpolitik / German Economic Association
We study whether decentralizing public employment services impacts job finding positively, as is suggested by the classic decentralization theorem, or negatively, as is suggested by political economy considerations. Our difference-in-difference estimates for a German reform in 2012 point to negative effects: Decentralization decreased job finding by 10% and increased the use of inefficient job creation programs that likely reduce local but increase federal public expenditures.
JEL-codes: H11 H75 I38 J48 (search for similar items in EconPapers)
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Working Paper: Public employment services under decentralization: evidence from a natural experiment (2017)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:vfsc17:168277
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