Business Model Choice for Latvian Public Employment Service: What is the Best for Labour Force Competitiveness?

Abstract

This study presents a comprehensive analysis of advantages and disadvantages of different business models for public employment services (hereafter - PES) aiming to determine the model most suitable for the Latvian labour markets.The study identifies strengths and weaknesses of performance monitoring systems applied by Latvian, Estonian and Danish PES, especially in the area of the implementation of active labour market policies and suggests a set of indicators which may be used for evaluation of PES influence on the performance of the labour market in light of the EU growth strategy “Europe 2020”.The study starts with a review of the theoretical and empirical literature on the impact of the design of the PES performance management on the labour demand and level of unemployment. The literature will provide theoretical framework for extensive evaluation of the business models of Latvian, Estonian and Danish PES. In-depth cross-country comparisons will make a stronger case for conclusions about the impact of different labour market policies instruments on the labour market in general and on specific target groups such as long-term unemployed and unemployed youth.