Open Access

An Efficiency Comparison of Regional Employment Offices Operating under Different Exogenous Conditions

Swiss Journal of Economics and Statistics2007143:BF03399232

Published: 29 December 2007


This paper investigates the technical efficiency differences of a sample of regional employment offices (REOs) across Swiss cantons. Regular job-search assistance, registration and matching of unemployed workers with job vacancies performed by employment offices are all important active labour market policies (ALMPs) which are often ignored in the literature evaluating the impact of active measures. 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 influence over the technical efficiency of each employment office. Even though these conditions affect significantly the relative performance of regional employment offices, the managerial efficiency component does remain important. Finally, the job placement process is characterised by decreasing returns to scale.


Regional employment officestechnical efficiencyexogenous conditionsstochastic frontier production function


Authors’ Affiliations

Geneva School of Business Administration (HEG), Carouge, Switzerland
Dpt of Credit and Country Risk Control, UBS AG, Zürich, Switzerland


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© Schweizerische Zeitschrift für Volkswirtschaft und Statistik 2007