Profiling the Unemployed : A Review of OECD Experiences and Implications for Emerging Economies
This paper takes stock of methods to profile the unemployed in public employment services (PESs) in OECD countries, in order to single out suitable approaches for PES in emerging economies. Profiling should enable PESs to segment jobseekers into gr...
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Language: | English en_US |
Published: |
World Bank Group, Washington, DC
2014
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Online Access: | http://documents.worldbank.org/curated/en/2014/08/20254295/profiling-unemployed-review-oecd-experiences-implications-emerging-economics http://hdl.handle.net/10986/20382 |
Summary: | This paper takes stock of methods to
profile the unemployed in public employment services (PESs)
in OECD countries, in order to single out suitable
approaches for PES in emerging economies. Profiling should
enable PESs to segment jobseekers into groups with similar
risk of work-resumption, and in turn to determine their
level of access to different levels of treatment. In our
framework PESs rely to a varying extent on (i) case worker
discretion and on (ii) data-intensive approaches. On one
hand of the spectrum, PESs may allocate interventions on a
first-come-first-serve basis according to broad eligibility
criteria (age, unemployment duration). This is likely to
either induce deadweight loss or to delay treatment. Most
often case managers judgment, steered by qualitative
guidelines, also plays a role. In this case outcomes depend
strongly on the available time and capacity of case
managers. An alternative approach is to exploit data about
jobseekers to determine the probability of work-resumption
according to a statistical model, which then allows the
identification of customers most likely to need active labor
market interventions. We argue that for PES in emerging
economies that show limited case management experience and
high customer load, statistical profiling could be a
suitable tool to maximize the impact of their scarce resources. |
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