Does short-time work save jobs?

Abstract

"In the Great Recession most OECD countries used short-time work (publicly subsidized working time reductions) to counteract a steep increase in unemployment. We show that short-time work can actually save jobs. However, there is an important distinction to be made: while the rule-based component of short-time work is a cost-efficient job saver, the discretionary component is completely ineffective. In a case study for Germany, we use the rich data available to combine micro- and macroeconomic evidence with macroeconomic modeling in order to identify, quantify and interpret these two components of short-time work." (Author's abstract, © 2016 Elsevier) ((en))

Cite article

Balleer, A., Gehrke, B., Lechthaler, W. & Merkl, C. (2016): Does short-time work save jobs? A business cycle analysis. In: European Economic Review, Vol. 84, No. May, p. 99-122. DOI:10.1016/j.euroecorev.2015.05.007