Why job brokering does NOT work in Poland?Experimental study
Adam PawluczykMagdalena SmykJoanna Tyrowicz
Group for Research in Applied Economics
Route for today
1.Why at all talk about this? 10% of employers report vacancies to employment offices Unemployment spells longer in Poland than elsewhere?
2.What did we do? Reported offers to employment offices and observed
reaction3.How did it work out?
60%: no reaction at all4.Why is it so?
Bad incentives (=legislation)5.What happened next?
Really shocking… reaction 6. Is this important?
Honestly: yes!
But first…
who is „we”?
MagdaM.A. student
pianist, lawyer
AdamM.A. student
VBA programmer
… so it was a part time thing, really!
Why talk about this?
Fact #1 10-20% offers get reported to labour officesFact #2 over 50% employers NEVER report an offerFact #3 2.5 times more unemployed find a job than there is job offers at labour offices
Jan-2005 Jan-2006 Jan-2007 Jan-2008 Jan-2009 Jan-2010 Jan-20110
20,000
40,000
60,000
80,000
100,000
120,000
140,000
finders
offers
Why talk about this?
Fact #1 10-20% offers get reported to labour officesFact #2 over 50% employers NEVER report an offerFact #3 2.5 times more unemployed find a job than there is job offers at labour offices
Jan-2005 Jan-2006 Jan-2007 Jan-2008 Jan-2009 Jan-2010 Jan-20112.0
2.1
2.2
2.3
2.4
2.5
2005-20122009-2012
Why talk about this?
Fact #1 10-20% offers get reported to labour officesFact #2 over 50% employers NEVER report an offerFact #3 2.5 times more unemployed find a job than there is job offers at labour offices
If finding workers is costly, higher reluctance to create jobs at all!
Additional fact #4 Roughly 1 out of 7 offers reported is available in the national IT system.
Additional fact #4 380 labour offices, each does it differently
But in public debate: for each bad case, examples of a good one…
What did we do?
1. Went step by step through legislation 2. Drafted four job offers
accountant, sales representative, driver, warehouse cleaner frequent + skill + formal qualifications
3. Pretending to be a (non-existant) company, we sent out request to help fill these vacancies to all labour market offices
by e-mail (perfectly legal) never answered follow-up questions
4. Observed the reaction for two weeks quantified the types of answers (time, equality of access,
clarity, technology, etc.)
5. Sent out a debriefing e-mail (from my account) with an invitation to a survey
questions on how they provide job brokering service to firms reached about 40% of response rate
How did it work out?
39%
61%
10.0% 12.0% 14.0% 16.0% 18.0% 20.0% 22.0% 24.0%5%
15%
25%
35%
45%
55%
65%
75%
85%
LB
ŚL
MPDŚ
OPZP
WPPM WM
PKMZ
KPŁD ŚK
LBL
22,1 – 38,6
17,1 – 22,012,1 – 17,0
4,5 – 12,0
%
Any answer came
No answer
How did it work out?
Why is it so?
Law is unfit to reality outdated (paper + requiring documents) uncomfortable fails to keep labour offices in the market with
commercial job posting service
Implementation is additionally damaging (survey evidence)
Labour offices do not consider GENERAL employers as clients bad experience focus on ALMPs
What happened next?
Coverage by a major weekly Subsequently huge media coverage
evening news for a year media reports (visits with LO’s) interviews with minister of L&SA
/even Trouw /
Joint conference employers, ML&SA, labour offices
… and nothing more: law stays the same, practice stays the same
We are working on two new experiments
Is it important?A
ust
ralia
Canada
G7 c
ountr
ies
Unit
ed S
tate
s
Norw
ay
Nort
h A
meri
ca
OEC
D c
ountr
ies
Oce
ania
Mexic
o
Finla
nd
Pola
nd
Euro
pe
Hungary
Sw
itze
rland
Cze
ch R
epublic
Slo
vak R
epublic
0
5
10
15
20
25
30
35
Is it important?
Job brokering is the most efficient ALMP, but stays outside the scope of (nearly) all international
comparisons effectiveness measured rarely, mostly in countries where it
already works
Putting numbers on such concrete „things” as response to job postings helps to cut through the chase shows deficiencies of legal design (many legislations are
simply „forgotten”) helps to set standards (in international perspective)
Thank you for your attention!
Joanna [email protected]
More about our research on http://grape.uw.edu.pl
Twitter: @GrapeUW
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