Employment service: Public or private?

Publikation: Beiträge in ZeitschriftenZeitschriftenaufsätzeForschungbegutachtet


This paper deals with the relative performance of private and public employment services. For this purpose, two behavioral models are developed which take into account that private and and public employment agents not only pursue different aims but also face different restrictions, in particular since a public employment agency lacks the right to reject applicants. While analysis of the necessary optimality conditions yields tentative conclusions about the advantages and disadvantages of both types of employment service, empirically testable hypotheses result from the predicted responses to increases in unemployment and in the cost of service, respectively. These predicted behaviors are likely to be considered unfair by society, causing dissatisfaction with both private and public employment agencies.

ZeitschriftPublic Choice
Seiten (von - bis)131-162
Anzahl der Seiten32
PublikationsstatusErschienen - 01.10.1996
Extern publiziertJa