The Evaluation of Active Labour Market Policies
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The Evaluation of Active Labour Market Policies

Measures, Public Private Partnerships and Benchmarking

Edited by Jaap de Koning

This book argues that active labour market policies are necessary to improve the position of the unemployed but have so far performed relatively poorly. The contributing authors seek ways to improve active labour market policy and consider three means of doing so: improving the quality by better targeting and by better-designed measures, more efficient implementation and delivery, and better performance by benchmarking the various implementation agencies involved.
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Chapter 11: Benchmarking Employment Services in Germany

Hugh Mosley and Kai-Uwe Müller


Hugh Mosley and Kai-Uwe Müller 1 INTRODUCTION This chapter examines the relative performance of 181 German Public Employment Service (PES) agencies in integrating unemployed persons into regular employment through classical labor market programs (training, wage subsidies, and direct job creation). The performance analysis is conceived as an exercise in analytical benchmarking in which good (and poor) performance is not only to be identified but also, insofar as possible, explained.1 Compared to the analysis of technical efficiency, which encompassed multiple outputs and inputs, the performance analysis is more narrowly focused on individual indicators of placement performance. This chapter limits the perspective to the reintegration success rates attained by labor market programs. For a performance comparison, this focus seems justified in light of the large share of personnel and expenditure that PES agencies devote to these activities. First, we discuss an analytical framework for benchmarking the success of PES labor market measures. Using the best available data, we then apply it in a comparison of the reintegration rates reported for the labor market programs conducted by German PES agencies. The aim of this exercise is to develop a praxis-oriented method with which PES organizations can compare the performance of their local agencies in real time and identify good (and bad) practice. What are the strengths, shortcomings, and pitfalls of such an approach to PES management and organizational learning? The principal steps of a benchmarking analysis can be summarized as follows: 1. 2. 3. 4. 5. Define performance...

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