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Non-compliance with temporary agency work regulations: Initial evidence from Germany

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  • Ganserer, Angelika

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.

Suggested Citation

  • Ganserer, Angelika, 2021. "Non-compliance with temporary agency work regulations: Initial evidence from Germany," ZEW Discussion Papers 21-057, ZEW - Leibniz Centre for European Economic Research.
    • Handle: RePEc:zbw:zewdip:21057
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    More about this item

    Keywords

    temporary agency work; contracting out; compliance; choice experiment;
    All these keywords.

    JEL classification:

    • K31 - Law and Economics - - Other Substantive Areas of Law - - - Labor Law
    • J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts
    • J83 - Labor and Demographic Economics - - Labor Standards - - - Workers' Rights
    • M55 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Labor Contracting Devices

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