Contracting Out Temporary Help Services in Germany

33 Pages Posted: 26 Nov 2005

See all articles by Elke J. Jahn

Elke J. Jahn

Institute for Employment Research (IAB); University of Bayreuth; IZA Institute of Labor Economics

Wolfgang Ochel

University of Munich - Ifo Institute for Economic Research; CESifo (Center for Economic Studies and Ifo Institute for Economic Research)

Date Written: November 2005

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.

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

JEL Classification: L33, J23, J41, J64

Suggested Citation

Jahn, Elke J. and Ochel, Wolfgang, Contracting Out Temporary Help Services in Germany (November 2005). CESifo Working Paper Series No. 1580, Available at SSRN: https://ssrn.com/abstract=854844

Elke J. Jahn

Institute for Employment Research (IAB) ( email )

Regensburger Str. 104
Nuremberg, 90478
Germany

University of Bayreuth ( email )

Bayreuth, 95447
Germany

IZA Institute of Labor Economics ( email )

P.O. Box 7240
Bonn, D-53072
Germany

Wolfgang Ochel (Contact Author)

University of Munich - Ifo Institute for Economic Research ( email )

Geschwister-Scholl-Platz 1
Munich, DE Bavaria 80539
Germany

CESifo (Center for Economic Studies and Ifo Institute for Economic Research)

Poschinger Str. 5
Munich, DE-81679
Germany

HOME PAGE: http://www.CESifo.de

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