Differential pricing and private provider performance

Pia Homrighausen
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Pia Homrighausen: Institute for Employment Research (IAB), Nuremberg, Germany

No 201425, IAB-Discussion Paper from Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany]

Abstract: "In many countries, employment services are contracted out to private providers. However, there is little evidence on the contract design as well as on the effects of differential pricing on private provider performance. This paper contributes to the literature by presenting detailed information on the contract design and compensation of German private employment service providers in 2009 and 2010. Using a comprehensive and unique data set, I estimate average marginal effects of different compensation components on labor market integration in the short and longer run. The estimation results indicate that high performance-independent upfront payments can decrease the reemployment probability of unemployed workers depending on subgroups of clients and characteristics of the private provider (market). High performance-based payments, however, on average have positive effects on private provider performance in the short and longer run. High malus payments on average have no effects on private provider performance." (Author's abstract, IAB-Doku) ((en))

Keywords: Bundesrepublik Deutschland; Beschäftigungsdauer; Erfolgskontrolle; Lohn; private Arbeitsvermittlung; Arbeitslose; Vermittlungserfolg; Vertrag; Arbeitsvermittlung; 2009-2010 (search for similar items in EconPapers)
JEL-codes: D44 D47 J68 L24 (search for similar items in EconPapers)
Pages: 40 pages
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

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Persistent link: https://EconPapers.repec.org/RePEc:iab:iabdpa:201425

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