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Contracting out Employment Services Involving Temporary Agency Work in Germany

Author

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  • Ochel, Wolfgang

Abstract

Since 2003 the German Public Employment Service has been experimenting with the contracting out of various services. One of the new labour market programmes is 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 Public Employment Service 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 ex-amines its appropriateness for efficient job placement services.

Suggested Citation

  • Ochel, Wolfgang, 2007. "Contracting out Employment Services Involving Temporary Agency Work in Germany," MPRA Paper 13820, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:13820
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    File URL: https://mpra.ub.uni-muenchen.de/13820/1/MPRA_paper_13820.pdf
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    References listed on IDEAS

    as
    1. Kvasnicka, Michael, 2003. "Inside The Black Box of Temporary Help Agencies," SFB 373 Discussion Papers 2003,43, Humboldt University of Berlin, Interdisciplinary Research Project 373: Quantification and Simulation of Economic Processes.
    2. Jens Lundsgaard, 2003. "Competition and Efficiency in Publicly Funded Services," OECD Economic Studies, OECD Publishing, vol. 2002(2), pages 79-128.
    3. David Grubb, 2003. "Points of Comparison between Australia’s Job Network and the Dutch Market for Reintegration Services," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 6(2), pages 357-370, June.
    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. 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.
    6. Antoni, Manfred & Jahn, Elke J., 2006. "Do Changes in Regulation Affect Employment Duration in Temporary Work Agencies?," IZA Discussion Papers 2343, Institute for the Study of Labor (IZA).
    7. Jens Lundsgaard, 2002. "Competition and Efficiency in Publicly Funded Services," OECD Economics Department Working Papers 331, OECD Publishing.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Bennmarker, Helge & Grönqvist, Erik & Öckert, Björn, 2013. "Effects of contracting out employment services: Evidence from a randomized experiment," Journal of Public Economics, Elsevier, vol. 98(C), pages 68-84.
    2. Bennmarker, Helge & Grönqvist, Erik & Öckert, Björn, 2009. "Effects of outsourcing employment services: evidence from a randomized experiment," Working Paper Series 2009:23, IFAU - Institute for Evaluation of Labour Market and Education Policy.

    More about this item

    Keywords

    Contracting-out; personnel service agency; quasi-markets; temporary agency work;

    JEL classification:

    • J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • L33 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Comparison of Public and Private Enterprise and Nonprofit Institutions; Privatization; Contracting Out
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand

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