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Contracting Out Temporary Help Services in Germany


  • Elke J. Jahn
  • Wolfgang Ochel


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.

Suggested Citation

  • Elke J. Jahn & Wolfgang Ochel, 2005. "Contracting Out Temporary Help Services in Germany," CESifo Working Paper Series 1580, CESifo Group Munich.
  • Handle: RePEc:ces:ceswps:_1580

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    References listed on IDEAS

    1. 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.
    2. Wolfgang Ochel, 2004. "Competitive Tendering and Contracting of Temporary Work Agencies in Germany," ifo DICE Report, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 2(2), pages 69-74, 07.
    3. Michael Kvasnicka, 2003. "Inside the Black Box of Temporary Help Agencies," Labor and Demography 0310003, EconWPA.
    4. Jens Lundsgaard, 2003. "Competition and Efficiency in Publicly Funded Services," OECD Economic Studies, OECD Publishing, vol. 2002(2), pages 79-128.
    5. Jens Lundsgaard, 2002. "Competition and Efficiency in Publicly Funded Services," OECD Economics Department Working Papers 331, OECD Publishing.
    6. David E. M. Sappington, 1991. "Incentives in Principal-Agent Relationships," Journal of Economic Perspectives, American Economic Association, vol. 5(2), pages 45-66, Spring.
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    Cited by:

    1. Jahn, Elke J. & Rosholm, Michael, 2010. "Looking beyond the bridge: How temporary agency employment affects labor market outcomes," IAB Discussion Paper 201009, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    2. Antoni, Manfred & Jahn, Elke J., 2006. "Do changes in regulation affect employment duration in temporary work agencies?," IAB Discussion Paper 200618, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    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 - Leibniz Institute for Economic Research at the University of Munich, vol. 61(21), pages 16-25, November.
    4. Michael C. Burda & Michael Kvasnicka, 2006. "Zeitarbeit in Deutschland: Trends und Perspektiven," Perspektiven der Wirtschaftspolitik, Verein für Socialpolitik, vol. 7(2), pages 195-225, May.

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

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