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Contracting Out Temporary Help Services in Germany

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Author Info

  • Elke J. Jahn
  • Wolfgang Ochel

Abstract

Since 2003 the German Public Employment Service (PES) has been experimenting with the contracting out of various services. One of the new labour market programmes is the Personnel Service Agencies, which provide client firms with jobseekers on a temporary assignment basis and are responsible for integrating jobseekers into non-subsidised employment. By contracting out employment services, the PES seeks to exploit efficiency gains characteristic of enterprises that compete in quasi-markets. In order to integrate jobseekers as rapidly as possible, a result-oriented system of incentives has been developed. This paper describes the institutional setting and examines its appropriateness for efficient job placement services.

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File URL: http://www.cesifo-group.de/portal/page/portal/DocBase_Content/WP/WP-CESifo_Working_Papers/wp-cesifo-2005/wp-cesifo-2005-11/cesifo1_wp1580.pdf
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Bibliographic Info

Paper provided by CESifo Group Munich in its series CESifo Working Paper Series with number 1580.

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Date of creation: 2005
Date of revision:
Handle: RePEc:ces:ceswps:_1580

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Related research

Keywords: contracting out; quasi-markets; temporary agency work; Personnel Service Agency;

This paper has been announced in the following NEP Reports:

References

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  1. Michael Kvasnicka, 2003. "Inside the Black Box of Temporary Help Agencies," Labor and Demography 0310003, EconWPA.
  2. David E. M. Sappington, 1991. "Incentives in Principal-Agent Relationships," Journal of Economic Perspectives, American Economic Association, vol. 5(2), pages 45-66, Spring.
  3. Wolfgang Ochel, 2004. "Competitive Tendering and Contracting of Temporary Work Agencies in Germany," CESifo DICE Report, Ifo Institute for Economic Research at the University of Munich, vol. 2(2), pages 69-74, 07.
  4. Domberger, Simon & Jensen, Paul, 1997. "Contracting Out by the Public Sector: Theory, Evidence, Prospects," Oxford Review of Economic Policy, Oxford University Press, vol. 13(4), pages 67-78, Winter.
  5. Jens Lundsgaard, 2002. "Competition and Efficiency in Publicly Funded Services," OECD Economics Department Working Papers 331, OECD Publishing.
  6. Jens Lundsgaard, 2002. "Competition and Efficiency in Publicly Funded Services," OECD Economic Studies, OECD Publishing, vol. 2002(2), pages 79-128.
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Citations

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Cited by:
  1. Michael C. Burda & Michael Kvasnicka, 2005. "Zeitarbeit in Deutschland: Trends und Perspektiven," SFB 649 Discussion Papers SFB649DP2005-048, Sonderforschungsbereich 649, Humboldt University, Berlin, Germany.
  2. Jahn, Elke J. & Rosholm, Michael, 2010. "Looking Beyond the Bridge: How Temporary Agency Employment Affects Labor Market Outcomes," Working Papers 10-6, University of Aarhus, Aarhus School of Business, Department of Economics.
  3. Robert Jäckle & Marianne Müller & Martin Werding, 2008. "Die Wiesbadener »Alltags-Engel« Zeitarbeit in haushaltsnahen Dienstleistungen als arbeitsmarktpolitisches Instrument im SGB II," Ifo Schnelldienst, Ifo Institute for Economic Research at the University of Munich, vol. 61(21), pages 16-25, November.
  4. Antoni, Manfred & Jahn, Elke J., 2006. "Do changes in regulation affect employment duration in temporary work agencies?," Discussion Papers 44, Friedrich-Alexander-University Erlangen-Nuremberg, Chair of Labour and Regional Economics.

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