Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/223841
Authors: 
Dyballa, Katharina
Kraft, Kornelius
Year of Publication: 
2020
Series/Report no.: 
IZA Discussion Papers No. 13399
Abstract: 
This study investigates the efficiency of the process of benefit determination for welfare recipients in Germany. A stochastic frontier analysis is used to compute (in)efficiency of Jobcenter (employment offices) in terms of average processing time used for determining benefit levels per case. Next, the quality of the process of welfare benefits determination is considered by analyzing the share of upheld opposition because of misapplication of the laws. No effect of the (in)efficiency term on quality is estimated such that the quality of decision is unrelated to the time input. Manning of the employment offices seems to be to a large extent determined by other factors than a fair allocation of scarce resources in relation to demand for them. However in the case of treatment of one particular group (newly registered unemployed) and one organizational measure (offices that arrange specific appointments) a trade-off is estimated. Moreover, better skilled employees need less time for servicing cases and produce less erroneous decision.
Subjects: 
employment offices
efficiency
processing time
quality of decisions
JEL: 
J65
I38
H53
H55
C54
Document Type: 
Working Paper

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