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The Efficiency of Public Employment Services: A Nonparametric Matching Function Analysis for Switzerland

GEORGE M. SHELDON
Journal of Productivity Analysis
Vol. 20, No. 1 (July, 2003), pp. 49-70
Published by: Springer
Stable URL: http://www.jstor.org/stable/41770122
Page Count: 22
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The Efficiency of Public Employment Services: A Nonparametric Matching Function Analysis for Switzerland
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Abstract

This study develops a methodology for assessing the efficiency of job placement services based on the matching function. Unlike most previous estimates of the matching function, based on aggregate time-series regressions and parametric functional forms, this study employs micro cross-sectional data and uses nonparametric frontier estimation techniques (DEA). The methodology is applied to 126 regional placement offices operating in Switzerland in the period 1997-98. In contrast to time-series regressions, our results point to sizable increasing returns-toscale. Our findings also suggest that counseling is more effective than other active labor market measures or disciplining actions in increasing matching efficiency.

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