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Public employment services under decentralization: Evidence from a natural experiment

Michael Weber ()

Annual Conference 2017 (Vienna): Alternative Structures for Money and Banking from Verein für Socialpolitik / German Economic Association

Abstract: 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)
New Economics Papers: this item is included in nep-cta, nep-pbe and nep-ure
Date: 2017
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:vfsc17:168277

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