A1 Refereed original research article in a scientific journal
The Decentralization of Public Employment Services and Local Governments’ Responses to Incentives
Authors: Nieminen Jeremias, Kanninen Ohto, Karhunen Hannu
Publisher: Oxford University Press
Publication year: 2023
Journal: Journal of Economic Geography
eISSN: 1468-2710
DOI: https://doi.org/10.1093/jeg/lbad027
Web address : https://doi.org/10.1093/jeg/lbad027
Self-archived copy’s web address: https://research.utu.fi/converis/portal/detail/Publication/181258071
We examine how the decentralization of public employment services (PES) affects the behavior and service provision of PES offices and the labor market outcomes of job seekers. We use difference-in-differences, utilizing a Finnish temporary reform during which PES were decentralized for specific groups of job seekers in treated municipalities and remained centralized for others. The reform presented the treated municipalities with the possibility of shifting costs to the central government. We find no evidence of better labor market outcomes and find evidence consistent with municipalities being able to shift 10% of their unemployment benefit costs to the central government.
Downloadable publication This is an electronic reprint of the original article. |