An Efficiency Comparison of Regional Employment Offices Operating Under Different Exogenous Conditions
17 Pages Posted: 5 Nov 2006
Date Written: October 2006
Abstract
This paper investigates the technical efficiency differences of a sample of regional employment offices (REOs) across Swiss cantons. The analysis is carried out by means of a stochastic production frontier model estimated on a panel of employment offices observed over the period between November 2000 and December 2001. The results show that the specific exogenous conditions exercise a strong influence over the technical efficiency of each employment office. Even though these conditions affect significantly the relative performance of REOs, the managerial efficiency component does remain important. Hence, REOs may improve their efficiency by adopting better managerial practices. Finally, the job placement process is characterised by decreasing returns to scale.
Keywords: Regional employment offices, technical efficiency, exogenous conditions, stochastic frontier production function
JEL Classification: C23, F14, J31
Suggested Citation: Suggested Citation
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