Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/130385
Authors: 
Weber, Michael
Year of Publication: 
2016
Series/Report no.: 
Ifo Working Paper 209
Abstract: 
A German policy experiment from 2012 allows me to identify the short-run and longruncausal effects of decentralization on the placement efficiency of public employmentservices (PES). I exploit variation over time and across districts with different types ofPES in a difference-in-differences framework. Decentralization had significant negativeeffects on placements in the short run, but not in the long run. This points to a transitionprocess, during which caseworkers acquire relevant placement skills. Decentralizationalso had a persistent negative effect on sanctions on the welfare recipients, which probablyindicates a reluctance of local authorities to reduce the well-being of their potential voters.
Subjects: 
Public employment services
job placement
matching efficiency
differencein- differences.
JEL: 
C21
E24
J48
Document Type: 
Working Paper

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