Public versus private job placement services

Abstract

In many welfare states, the provision of placement services for job seekers has been an important task for public employment services. Since the end of the last millennium, government provision of such services has come under increasing criticism for a presumed lack of efficiency. Thus, many countries have chosen to contract out at least part of their placement services to private providers. With contracting-out, a state agency specifies the tasks to be performed by private firms. Competition for entry into the market is achieved by means of a bidding process among potential service providers. One or more providers wins the right to supply a set of services, while a state agency maintains some control over activities.

Cite article

Stephan, G. (2017): Public versus private job placement services. Commentary. In: IZA world of labor No. 05.06.2017, p. 1-1.