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The New Role of Temporary Agency Work in Germany

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  • Spermann, Alexander

    (University of Freiburg)

Abstract

This paper reviews the development of temporary agency work after its deregulation in the context of the so-called Hartz reforms in Germany. The new role of agency work emerges from its enormous growth after deregulation, the intense use of agency work by big stock-listed companies and upcoming structural shortage of skilled labor. Agency work turns out to be procyclical and a leading indicator of labor market trends as well as an early indicator of recessions. The stepping stone hypothesis is only accepted for long-term unemployed after the Hartz reforms. Anecdotal evidence of revolving door effects is well-known but substitution as a broad-based phenomenon is not plausible. Education of staffing agents and training programs for agency workers are on the staffing industry's agenda and will be even more important in the near future due to structural skills shortages.

Suggested Citation

  • Spermann, Alexander, 2011. "The New Role of Temporary Agency Work in Germany," IZA Discussion Papers 6180, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp6180
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    Citations

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    Cited by:

    1. Werner Eichhorst & Verena Tobsch, 2015. "Not so standard anymore? Employment duality in Germany [Vom Normalarbeitsverhältnis zu atypischen Verträgen? Die Dualisierung des deutschen Arbeitsmarktes]," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 48(2), pages 81-95, August.
    2. Simon Woodcock, 2022. "The Determinants of Displaced Workers’ Wages: Sorting, Matching, Selection, and the Hartz Reforms," Discussion Papers dp22-04, Department of Economics, Simon Fraser University.
    3. Woodcock, Simon D., 2020. "The Effect of the Hartz Labor Market Reforms on Post-unemployment Wages, Sorting, and Matching," IZA Discussion Papers 13300, Institute of Labor Economics (IZA).
    4. Spermann, Alexander, 2013. "How Does Temporary Agency Work Impact German Agency Workers?," IZA Policy Papers 70, Institute of Labor Economics (IZA).
    5. Bräuninger, Michael & Michaelis, Jochen & Sode, Madlen, 2013. "10 Jahre Hartz-Reformen," HWWI Policy Papers 73, Hamburg Institute of International Economics (HWWI).
      • Michael Bräuninger & Jochen Michaelis & Madlen Sode, 2013. "10 Jahre Hartz-Reformen," MAGKS Papers on Economics 201318, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
    6. Jung, Sven, 2013. "Employment Adjustment in German Firms," VfS Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order 79696, Verein für Socialpolitik / German Economic Association.
    7. Werner Eichhorst, 2015. "The Unexpected Appearance of a New German Model," British Journal of Industrial Relations, London School of Economics, vol. 53(1), pages 49-69, March.
    8. Gary Herrigel, 2015. "Globalization and the German industrial production model [Globalisierung und das deutsche Modell der Industrieproduktion]," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 48(2), pages 133-149, August.
    9. Jennifer Ferreira, 2016. "The German temporary staffing industry: growth, development, scandal and resistance," Industrial Relations Journal, Wiley Blackwell, vol. 47(2), pages 117-143, March.
    10. Alexander Spermann, 2016. "How can temporary work agencies provide more training?," IZA World of Labor, Institute of Labor Economics (IZA), pages 251-251, April.
    11. Chamdani Chamdani & Krisnadi Nasution & Slamet Suhartono & Hufron Hufron, 2022. "Legal protection for outsourced workers/laborers due to termination of employment during the contract period," Technium Social Sciences Journal, Technium Science, vol. 34(1), pages 283-311, August.
    12. Ehrich, Malte & Munasib, Abdul & Roy, Devesh, 2018. "The Hartz reforms and the German labor force," European Journal of Political Economy, Elsevier, vol. 55(C), pages 284-300.
    13. Woodcock, Simon D., 2023. "The determinants of displaced workers’ wages: Sorting, matching, selection, and the Hartz reforms," Journal of Econometrics, Elsevier, vol. 233(2), pages 568-595.
    14. Kahlenberg, Christoph & Spermann, Alexander, 2012. "How Could Germany Escape the Demographic Trap?," IZA Policy Papers 48, Institute of Labor Economics (IZA).
    15. Spermann, Alexander, 2014. "Zehn Jahre Hartz IV – Was hilft Langzeitarbeitslosen wirklich?," IZA Standpunkte 76, Institute of Labor Economics (IZA).
    16. Eichhorst, Werner & Tobsch, Verena, 2013. "Has Atypical Work Become Typical in Germany?," IZA Discussion Papers 7609, Institute of Labor Economics (IZA).
    17. Eichhorst, Werner & Marx, Paul & Tobsch, Verena, 2013. "Non-Standard Employment across Occupations in Germany: The Role of Replaceability and Labour Market Flexibility," IZA Discussion Papers 7662, Institute of Labor Economics (IZA).
    18. Eichhorst, Werner. & Tobsch, Verena., 2013. "Has atypical work become typical in Germany? : country case studies on labour market segmentation," ILO Working Papers 994814963402676, International Labour Organization.
    19. repec:ilo:ilowps:481496 is not listed on IDEAS
    20. Alexander Spermann, 2014. "Wandel und Stabilität in der Arbeitswelt — Das Beispiel der Zeitarbeit," Schmalenbach Journal of Business Research, Springer, vol. 66(68), pages 88-101, January.
    21. David Jordhus-Lier & Anders Underthun & Kristina Zampoukos, 2019. "Changing workplace geographies: Restructuring warehouse employment in the Oslo region," Environment and Planning A, , vol. 51(1), pages 69-90, February.
    22. Smirnych, L. I. & Wörgötter, Andreas, 2016. "The importance of institutional and organizational characteristics for the use of fixed-term and agency work contracts in Russia," ECON WPS - Working Papers in Economic Theory and Policy 09/2016, TU Wien, Institute of Statistics and Mathematical Methods in Economics, Economics Research Unit.
    23. Neumann, Uwe, 2017. "Temporary agency employment in Germany: A strategic "buffer" for firms and regions in the crisis?," Ruhr Economic Papers 727, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    24. Jung, Sven, 2012. "Employment adjustment in German firms," Discussion Papers 80, Friedrich-Alexander University Erlangen-Nuremberg, Chair of Labour and Regional Economics.
    25. Sven Jung, 2014. "Employment adjustment in German firms [Betriebliche Beschäftigungsanpassung in Deutschland]," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 47(1), pages 83-106, March.

    More about this item

    Keywords

    stepping stone hypothesis; temporary agency work; Hartz reform; staffing industry; revolving door effect;
    All these keywords.

    JEL classification:

    • I2 - Health, Education, and Welfare - - Education
    • J2 - Labor and Demographic Economics - - Demand and Supply of Labor
    • J4 - Labor and Demographic Economics - - Particular Labor Markets

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