Should Local Public Employment Services be Merged with the Local Social Benefit Administrations?

Table A3: IV-Estimates (Second stage)

Dependent variable:	Log number of long-term unemployed finding a job each month
	(1)	(2)	(3)	(4)
Approved Local Provider	-0.167	-0.204*	-0.277*	-0.297*
	[0.092]	[0.090]	[0.121]	[0.129]
Specialized case management		-0.078*	-0.077**	-0.080**
		[0.027]	[0.026]	[0.026]
Own vacancy recruitment service			0.093	0.100
			[0.049]	[0.055]
Integrated matching approach			0.021	0.024
			[0.036]	[0.036]
Length of first interview (Log)				0.018
				[0.024]
First interview within 2 weeks				0.004
				[0.034]
Agreement signed				0.043
				[0.057]
Long-term unemployed (Log)	0.703**	0.685**	0.681**	0.681**
	[0.047]	[0.044]	[0.035]	[0.034]
Long-term unemployed in neighbouring regions (Log)	-0.022	0.005	0.021	0.023
	[0.061]	[0.060]	[0.053]	[0.053]
Short-term unemployed (Log)	0.227	0.258*	0.239*	0.246*
	[0.111]	[0.106]	[0.106]	[0.104]
Short-term unemployed in neighbouring regions (Log)	-0.194	-0.214	-0.245*	-0.250*
	[0.103]	[0.102]	[0.093]	[0.092]
New vacancies (Log)	-0.024	-0.012	-0.005	-0.011
	[0.047]	[0.039]	[0.037]	[0.037]
New vacancies in neighbouring regions (Log)	0.115*	0.101*	0.110*	0.112*
New vacancies in neighbouring regions (Log)	[0.040]	[0.039]	[0.039]	[0.040]
Rural regions	0.019	0.023	0.042	0.039
	[0.036]	[0.036]	[0.038]	[0.040]
Metropolitan regions	-0.120*	-0.116*	-0.103*	-0.107*
	[0.048]	[0.040]	[0.039]	[0.042]
East Germany	-0.014	-0.007	0.013	0.007
	[0.049]	[0.045]	[0.045]	[0.045]
Population (Log)	0.156	0.137	0.134	0.131
	[0.094]	[0.084]	[0.082]	[0.085]
Constant	-2.977**	-2.844**	-2.630**	-2.708**
	[0.637]	[0.597]	[0.528]	[0.504]
Observations	409	399	399	387
F-Statistic	25.87	24.00	26.47	29.74
Durbin-Wu-Hausman Test (p-value)	0.174	0.149	0.130	0.095
R-squared	0.98	0.98	0.98	0.98

Standard errors are given in parentheses. Coefficients with * and ** indicate significance at a 5 % and 1 %
level, respectively. Observations are clustered at the level of the 16 German states and weighted accordingly.

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