Classification of District Employment Agencies in Terms of Employment and Cost-Effectiveness Using Regression Trees

Abstract Research background: The efficiency of the functioning of District Employment Agencies is often assessed on the basis of the level of employment and cost-effectiveness indices. The values of these indices are influenced by various socio-economic factors, which were grouped into five areas in the paper: unemployment, demography, environment, entities and the human potential of District Employment Agencies (PUPs). The research was conducted in 340 District Employment Agencies in 2017. Purpose: The purpose of the study is to separate groups of District Employment Agencies with similar values of employment and cost-effectiveness indices, with the simultaneous identification of the level of factors that characterize the socio-economic situation and staff potential in each of the separated groups. Research methodology: One of the methods of a multidimensional statistical analysis – the regression trees method was used in the work. Results: The use of regression trees allowed the separation of groups of District Employment Agencies, which differed in terms of the level of employment and cost-effectiveness indices, and characterized these groups due to socio-economic factors and staffing potential. Novelty: The survey covers all District Employment Agencies in Poland and the obtained research results can be useful for labor market institutions to assess the efficiency of PUPs.