6533b827fe1ef96bd1286fe2
RESEARCH PRODUCT
The Employment Effect of Reforming a Public Employment Agency
Klaus WäldeKlaus WäldeKlaus WäldeAndrey LaunovAndrey LaunovAndrey Launovsubject
Economics and EconometricsLabour economicsFull employmentmedia_common.quotation_subject05 social sciencesjel:J65jel:E24employment agencies unemployment benefits labour market reform unemployment structural modeljel:J68HPublic employment0502 economics and businessAgency (sociology)UnemploymentEconomicsMarket reform050207 economicsFinance050205 econometrics media_commondescription
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 explains 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.
| year | journal | country | edition | language |
|---|---|---|---|---|
| 2015-01-01 |