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Title: The Local Public Employment Services Case Study: The DEA Method and Its Application Possibilities for Measuring Efficiency in the Public Sector
Abstract: In the process of enhancing the match between supply and demand in the labor market, Public Employment Services (PES) are recognized as crucial institutions. However, despite their significance, PES still fall short of the desired efficiency. The indicated issue is partially brought on by the use of labor market policy instruments not properly evaluated. This study aims to confirm whether it is feasible to gauge public sector organizations’ effectiveness using the two-stage Data Envelopment Analysis (DEA) method. The authors concentrated on 39 PES running in Poland’s Mazovia province in 2019. Six variables were included in the first stage of the local PES’s technical efficiency model (four inputs and two outputs). Only seven PES achieved 100 percent efficiency. The range of PES analyzed’s efficiency was between 1% and 80%. In the second stage, the relationship between true unknown efficiency and its determinants is the main topic of discussion (five environmental variables, both demand and supply oriented). Then, the regression coefficients and confidence intervals demonstrated that three of the five variables—the proportion of long-term unemployed, the proportion of unemployed under 30, and the proportion of unemployed over 50—influence the efficiency results.
Keywords: efficiency; DEA method; public policy; labor market; public employment services
Paper Quality: SCOPUS / Web of Science Level Research Paper
Subject: Economics
Writer Experience: 20+ Years
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