Employment service: Public or private?

Research output: Journal contributionsJournal articlesResearchpeer-review

Authors

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.

Original languageEnglish
JournalPublic Choice
Volume89
Issue number1-2
Pages (from-to)131-162
Number of pages32
ISSN0048-5829
DOIs
Publication statusPublished - 01.10.1996
Externally publishedYes

DOI