Do Changes in Regulation Affect Employment Duration in Temporary Work Agencies?
Manfred Antoni and Elke J. Jahn
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 tempo- rary work agencies to conclude fixed-term contracts. These reforms should have had an effect on employment duration within temporary work agencies. Based on an informative administrative data set we use a mixed proportional hazard rate model to examine whether employment dura- tion has changed in response to these reforms. We find that the repeated prolongation of the maximum period for hiring-out employees significantly increased average employment duration while the authorization of fixed-term contracts reduced employment tenure.Key words: temporary agency work, regulation, labor law, hazard rate model.