Flexibility by Law? The West German Employment Promotion Act and Temporary Employment

Rainer Dombois

Cambridge Journal of Economics, 1989, vol. 13, issue 2, 359-71

Abstract: Since the end of the 1970s, growing unemployment has, in many European countries, been accompanied by a politics of deregulating labor markets. The Employment Promotion Act of 1985 was a milestone in normative deregulation, extending employers' possibilities of subcontracting and of temporary hiring. The article sums up the empirical findings on changes in firms' temporary hirings in the local labor market of a northern German depressed area, and identifies very different interests and functions served, as well as the limitations of temporary hirings. Normative deregulation seems only to enforce tendencies in the labor market, not to change them. Copyright 1989 by Oxford University Press.

Date: 1989
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