Using a unique vacancy dataset, we find that the Public Employment Agency (PEA) distributes workers more evenly across vacancies than the private market. We investigate the implications of having such a market place by using a directed search model, where firms can search via the PEA or the private market. Lower coordination frictions reduce wage competition and enable registered firms to pay lower wages compared to the private market. This advantage has to be traded off against the negative selection of applicants coming through the PEA. We take these theoretical predictions to the data and find strong support for them.
Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in EconStor may Employment Protection and the Market for Innovations AbstractWe study the effects of employment protection taking into account that firms can invest in R&D or buy new technologies in order to restore their productivity. To do so we develop an equilibrium matching model with an imperfect labor and innovation market. If employment protection is introduced, firms' willingness to pay for product or process innovations increases. This shifts economic activity towards firms specializing in process and product innovation and triggers entry of new start-ups. We calibrate our model to match aggregate US labor and product market statistics and show that our model generates the estimated negative impact of wrongful dismissal laws in the US on productivity and the positive effect on the number of innovations and firms.JEL-Code: J640, J650, O310, O380.
Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. In many countries Public Employment Agencies (PEA) offer intermediation services to help as many people as possible to find work by bringing together supply and demand. Using a unique vacancy-level data-set on the number of applicants, we find positive effects of the intermediation services on mitigating search frictions. In particular, we show that applications coming via the PEA are more evenly distributed across vacancies than the applications coming via other search channels. This holds for the total number of applicants as well as the suitable number of applicants. Our results suggest that the market operated by the PEA attains more coordinated job applications compared to other search channels. Terms of use: Documents in
Models of random search, directed search, or stock-ow matching differ substantially in the way they assume that job seekers and firms behave during the recruitment process. In this paper we identify new patterns about the recruitment behaviour of firms using the entropy balancing technique and argue that stock-flow matching models-if suitably amended by a timeconsuming screening technology-are best able to explain why the vacancy-filling hazard is increasing during the planned search period and decreases thereafter, why most applicants arrive early in the recruitment process, and why the willingness to pay higher wages or to hire less qualified or experienced applicants increases for firms, which have been unlucky and unable to hire until the intended starting date. JEL-Codes: J630, J640.
The German Federal government has allowed local governments of some regions (Approved Local Providers) to be solely responsible for the care of unemployment benefit II recipients. In the remaining regions Joint Local Agencies were formed, where the local social benefit administrations work together with the local public employment services. We find that despite positive self-selection Approved Local Providers do not perform better than Joint Local Agencies. Even more interestingly, using a unique data set on organisational characteristics we are able to show that the organisational features implemented primarily by Approved Local Providers are positively correlated with the job finding probability of the unemployment benefits II recipients. Thus, local governments that self-selected into Approved Local Providers seem to have implemented a better organisational structure. However, their relatively poor performance overall compared to Joint Local Agencies suggests that they underestimated the benefits of having the local public employment service merged with the local social benefit administration. Zusammenfassung Die Deutsche Bundesregierung hat ausgewählten Kommunen (zugelassene kommunale Träger zkT) die Möglichkeit eröffnet, sich eigenverantwortlich um die Betreuung erwerbsfähiger Hilfebedürftiger (sog. Hartz IV Empfänger) zu kümmern. In den restlichen Kommunen wurden sogenannte Arbeitsgemeinschaften (ARGEn) von Arbeitsagenturen und Kommunen gegründet, in denen die kommunale Sozialverwaltung mit den Arbeitsagenturen zusammenarbeitet. Doch trotz der positiven Selbstselektion der zkT-Regionen weisen diese für die erwerbsfä-higen Hilfebedürftigen keine höheren Übergangsraten auf als die ARGEn. Um einen tieferen Einblick in die organisatorische Struktur der relevanten Institutionen zu gewinnen, wurde ein spezifischer Datensatz genutzt, der wichtige Merkmale aller Arbeitsagenturen enthält. Die Tatsache, dass zkT überwiegend Organisationsstrukturen verwenden, die positiv korreliert sind mit höheren Erfolgsquoten beim Übergang in die Erwerbstätigkeit von Arbeitslosengeld IIEmpfängern, deutet darauf hin, dass die Verantwortlichen auf regionaler Ebene, die das zkT Modell gewählt haben, die für die Arbeitslosengeld II-Empfänger erfolgreichere Organisationsform gefunden haben. Allerdings bedeutet die relativ schlechte Performance der zkT-Regionen im Vergleich zu den ARGEn-Regionen -wie auf Basis des TreatmentEffekts unter Kontrolle der Organisationsmerkmale gezeigt wurde -, dass auch die bessere Organisationsform nicht die Nachteile kompensieren kann, die sich aus der integrierten Form der kommunalen Arbeitsvermittlung und der Sozialverwaltung ergeben haben.
The impact of a stronger work requirement for welfare recipients in a workfare program is studied in an efficiency wage model where a representative firm chooses its level of monitoring activities. A stricter workfare policy raises employment and monitoring activities. It typically increases profits and reduces the tax rate. The impact on the net wage is ambiguous. Utility levels of employed workers and welfare recipients may increase even if the net wage declines. The utility differential between these two groups of workers shrinks.
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