TY - RPRT AU - Ayaita, Adam AU - Grund, Christian AU - Pütz, Lisa TI - Job Placement via Private vs. Public Employment Agencies: Investigating Selection Effects and Job Match Quality in Germany PY - 2021/Jan/ PB - Institute of Labor Economics (IZA) CY - Bonn T2 - IZA Discussion Paper IS - 14024 UR - https://www.iza.org/index.php/publications/dp14024 AB - Employment agencies aim to match individuals to appropriate jobs. There are public and private employment agencies, which co-exist in many countries. Selection effects may be relevant in the sense that private agencies potentially engage in 'cream-skimming' by prioritizing highly qualified workers. The resulting job match quality is also important from an individual, a firm, and a society perspective. We examine the selection into job placement via private and public employment agencies as well as the resulting job match qualities, taking a job-market reform in Germany into account: the introduction of placement vouchers for private job placements. Using representative German panel data, we find that cream-skimming is significantly less pronounced under the voucher policy, as private agencies shift the focus toward unemployed individuals with a voucher. In addition, we find evidence based on propensity score matching estimations that private agencies tend to create better matches than their public counterparts. KW - job placement KW - job search KW - private employment agencies KW - job match quality KW - public employment agency KW - cream-skimming KW - selection KW - vouchers ER -