Job placement via private vs. public employment agencies: Investigating selection effects and job match quality in Germany
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 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.
Year of publication: |
2021
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Authors: | Ayaita, Adam ; Grund, Christian ; Pütz, Lisa |
Publisher: |
Berlin : Deutsches Institut für Wirtschaftsforschung (DIW) |
Subject: | Cream-skimming | employment agencies | job match quality | job placement | job search | selection | vouchers |
Saved in:
freely available
Series: | |
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Type of publication: | Book / Working Paper |
Type of publication (narrower categories): | Working Paper |
Language: | English |
Other identifiers: | 175017927X [GVK] hdl:10419/231532 [Handle] |
Classification: | J64 - Unemployment: Models, Duration, Incidence, and Job Search ; L33 - Comparison of Public and Private Enterprises; Privatization; Contracting Out ; M5 - Personnel Economics |
Source: |
Persistent link: https://www.econbiz.de/10012483868