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Public employment services, employers and the failure of placement of low-skill workers in six European countries
[working paper]
Corporate Editor
University of Edinburgh, Publication and Dissemination Centre (PUDISCwowe)
Abstract The paper explains why across Europe very few job matches are facilitated by public employment services (PES), looking at the existence of a double-sided asymmetric information problem on the labour market. It is argued that although a PES potentially reduces search costs, both employers and employ... view more
The paper explains why across Europe very few job matches are facilitated by public employment services (PES), looking at the existence of a double-sided asymmetric information problem on the labour market. It is argued that although a PES potentially reduces search costs, both employers and employees have strong incentives not to use the PES. The reason is that employers try to avoid the ‘worst’ employees, and employees try to avoid the ‘worst’ employers. Therefore PES get caught in a low-end equilibrium that is almost impossible to escape. The mechanisms leading to this low-end equilibrium are illustrated by means of qualitative interviews with 40 private employers in six European countries.... view less
Keywords
labor administration; international comparison; job seeker; employer; employment service
Classification
Labor Market Research
Free Keywords
Asymmetric information; employers; job-brokering; low-skill workers; public employment services
Document language
English
Publication Year
2011
City
Edinburgh
Page/Pages
30 p.
Series
Working Papers on the Reconciliation of Work and Welfare in Europe, REC-WP 02/2011
Status
Published Version; reviewed
Licence
Deposit Licence - No Redistribution, No Modifications