Non-Compliance With Temporary Agency Work Regulations: Initial Evidence From Germany

37 Pages Posted: 11 Aug 2021

See all articles by Angelika Ganserer

Angelika Ganserer

ZEW – Leibniz Centre for European Economic Research

Date Written: 2021

Abstract

Temporary agency work and outsourcing to a service contractor are two forms of alternative work arrangements with rather complex legal aspects which firms use for external staffing. The regulatory complexity of temporary agency work can lead to intended or unintended non-compliance when firms outsource to a service contractor. In this paper, I provide first evidence for non-compliance with temporary agency work regulations when firms contract out on the basis of a unique new firm survey. By exploiting a choice experiment, I demonstrate that firms do understand the regulatory baseline of temporary agency work, although detailed knowledge often seems to be missing. Non-compliance with regulations therefore often results from ignorance of the legal grayzone.

Keywords: temporary agency work, contracting out, compliance, choice experiment

JEL Classification: K31, J41, J83, M55

Suggested Citation

Ganserer, Angelika, Non-Compliance With Temporary Agency Work Regulations: Initial Evidence From Germany (2021). ZEW - Centre for European Economic Research Discussion Paper No. 21-057, Available at SSRN: https://ssrn.com/abstract=3901681 or http://dx.doi.org/10.2139/ssrn.3901681

Angelika Ganserer (Contact Author)

ZEW – Leibniz Centre for European Economic Research ( email )

P.O. Box 10 34 43
L 7,1
D-68034 Mannheim, 68034
Germany

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