In this paper a wage-subsidy scheme for the long-term unemployed has been used to illustrate how the process-related aspects of an employment scheme can be quantified and related to the placement results. In the case of this scheme, the method of implementation appears to have a distinct effect on the results. By changing a demand-oriented approach to a more supply-oriented one, labour exchanges can raise their placement results by almost 40%. If all labour exchanges adopted a more supply-oriented approach, the average placement percentage would increase by about 10%. If, in addition, each labour exchange had one additional staff member to carry out the scheme, a 20% increase in total placements would occur.
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Koning et al. (1991) studied this question.
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