December 12, 2006

Measuring the effectiveness of Public Employment Service (PES) workers; an empirical analysis based on the performance outcomes of regional employment offices

Bemiddeling voor werkzoekenden lonend

Press release
De uitkeringsbesparingen die de inzet van case-managers van het CWI opleveren, zijn hoger dan de kosten die hiermee gemoeid zijn. Uitgaven aan preventie en bemiddeling via CWI-medewerkers zijn dus kosten-effectief.

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Dick Morks

Using unique administrative monthly data from local PES offices during 2004, we exploit the fact that the number of PES workers per job seeker varies substantially between offices. We find additional PES workers to significantly increase outflow rates for short term unemployed and unemployment insurance (UI) recipients. In contrast, no effects are obtained for the outflow rates of long term unemployed and social assistance (SA) recipients.

We also find additional PES workers to reduce the inflow into the schemes, to improve the timeliness of UI benefits and to increase the number of vacancies that are registered by offices. Although the effectiveness of PES workers is limited, we conclude that changes in the number of PES workers per client are cost-effective - that is, the extra costs are compensated for by the resulting reduction in benefit expenses.


Pierre Koning