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Public employment services, employers and the failure of placement of low-skill workers in six European countries

[working paper]

Larsen, Christian Albrekt; Vesan, Patrik

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Please use the following Persistent Identifier (PID) to cite this document:http://nbn-resolving.de/urn:nbn:de:0168-ssoar-222260

Further Details
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 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.
Keywords labor administration; international comparison; employment service; job seeker; employer
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