Labour hoarding and its impact on stabilising employment

Abstract

"The German labour market did not show a strong reaction to the global financial crises. One possible reason for this is a strategy of labour hoarding; that is, firms did not immediately adjust labour input in line with demand for their products. By using aggregate and firm-level data, this article finds that labour hoarding was relevant for the German labour market during times of crises. Short-time work facilitated the retention of workers, but it was also used by firms not suffering significantly from an under-utilization of their capacities. To avoid deadweight effects the state should consider a more selective use of short-time work." (Author's abstract, IAB-Doku) ((en))

Cite article

Dietz, M., Dittrich, L., Stops, M. & Walwei, U. (2011): Beschäftigungssicherung durch Arbeitskräftehorten. In: Sozialer Fortschritt, Vol. 60, No. 10, p. 221-231. DOI:10.3790/sfo.60.10.221