Do Changes in Regulation Affect Employment Duration in Temporary Work Agencies?

30 Pages Posted: 17 Oct 2006

See all articles by Manfred Antoni

Manfred Antoni

Institute for Employment Research (IAB)

Elke J. Jahn

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

Date Written: September 2006

Abstract

Over the past three decades Germany has repeatedly deregulated the law on temporary agency work by stepwise increasing the maximum period for hiring-out employees and allowing temporary work agencies to conclude fixed-term contracts. These reforms should have had an effect on the employment duration within temporary work agencies. Based on an informative administrative data set we use hazard rate models to examine whether the employment duration has changed in response to these reforms. We find that the repeated prolongation of the maximum period for hiring-out employees significantly increased the average employment duration while the authorization of fixed-term contracts reduced employment tenure.

Keywords: temporary agency work, regulation, labor law, duration analysis, hazard rate models

JEL Classification: C41, J23, J40, J48, K31

Suggested Citation

Antoni, Manfred and Jahn, Elke J., Do Changes in Regulation Affect Employment Duration in Temporary Work Agencies? (September 2006). IZA Discussion Paper No. 2343. Available at SSRN: https://ssrn.com/abstract=937876

Manfred Antoni (Contact Author)

Institute for Employment Research (IAB) ( email )

Regensburger Str. 104
Nuremberg, 90478
Germany

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

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