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Differential pricing and private provider performance

Author

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  • Homrighausen, Pia

    (Institute for Employment Research (IAB), Nuremberg, Germany)

Abstract

"In many countries, employment services are contracted out to private providers. However, there is little evidence on the contract design as well as on the effects of differential pricing on private provider performance. This paper contributes to the literature by presenting detailed information on the contract design and compensation of German private employment service providers in 2009 and 2010. Using a comprehensive and unique data set, I estimate average marginal effects of different compensation components on labor market integration in the short and longer run. The estimation results indicate that high performance-independent upfront payments can decrease the reemployment probability of unemployed workers depending on subgroups of clients and characteristics of the private provider (market). High performance-based payments, however, on average have positive effects on private provider performance in the short and longer run. High malus payments on average have no effects on private provider performance." (Author's abstract, IAB-Doku) ((en))

Suggested Citation

  • Homrighausen, Pia, 2014. "Differential pricing and private provider performance," IAB-Discussion Paper 201425, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    • Handle: RePEc:iab:iabdpa:201425
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    Cited by:

    1. Michael Stops, 2016. "Revisiting German labour market reform effects—a panel data analysis for occupational labour markets," IZA Journal of European Labor Studies, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 5(1), pages 1-43, December.
    2. Michael Moritz & Bastian Stockinger & Merlind Trepesch, 2017. "Multinational Resilience or Dispensable Jobs? German FDI and Employment in the Czech Republic Around the Great Recession," Prague Economic Papers, Prague University of Economics and Business, vol. 2017(3), pages 345-359.
    3. Rüdiger Wapler & Daniel Werner & Katja Wolf, 2018. "Active labour market policies in Germany: do regional labour markets benefit?," Applied Economics, Taylor & Francis Journals, vol. 50(51), pages 5561-5578, November.
    4. Henna Busk & Christine Dauth & Elke J. Jahn, 2017. "Do Changes in Regulation Affect Temporary Agency Workers’ Job Satisfaction?," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 56(3), pages 514-544, July.
    5. Stephan, Gesine & Uthmann, Sven, 2014. "Akzeptanz von Vergeltungsmaßnahmen am Arbeitsplatz : Befunde aus einer quasi-experimentellen Untersuchung," IAB-Discussion Paper 201427, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    6. Vom Berge, Philipp & Schmillen, Achim, 2015. "Direct and indirect effects of mass layoffs : evidence from geo-referenced data," IAB-Discussion Paper 201511, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    7. Gesine Stephan, 2016. "Public or private job placement services—Are private ones more effective?," IZA World of Labor, Institute of Labor Economics (IZA), pages 285-285, August.
    8. Walwei, Ulrich, 2015. "From deregulation to re-regulation : trend reversal in German labour market institutions and its possible implications," IAB-Discussion Paper 201510, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].

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    More about this item

    Keywords

    Bundesrepublik Deutschland ; Beschäftigungsdauer ; Erfolgskontrolle ; Lohn ; private Arbeitsvermittlung ; Arbeitslose ; Vermittlungserfolg ; Vertrag ; Arbeitsvermittlung ; 2009-2010;
    All these keywords.

    JEL classification:

    • D44 - Microeconomics - - Market Structure, Pricing, and Design - - - Auctions
    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy
    • L24 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Contracting Out; Joint Ventures
    • D47 - Microeconomics - - Market Structure, Pricing, and Design - - - Market Design

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