Beschreibung

"We provide worker level evidence on selection into short time work (STW) and study employment and wage trajectories of workers after STW during the COVID-19 pandemic. Using novel administrative data covering detailed employment histories of over 7 million workers and containing information on STW status on the individual level, we investigate which characteristics determine selection of workers into STW. Next, we study short- and medium-term employment and wage outcomes of workers that were in STW during the beginning of the pandemic and compare these workers with workers in STW establishments that were not in STW themselves using an event study design with entropy balancing. Our results indicate negative selection into STW. In terms of employment trajectories, we find positive effects of STW on the probability to remain employed. These effects are driven by an increased probability to remain with the same employer. However, the initial positive employment effects do not persist and fade out quickly. Furthermore, this temporarily increased employment stability comes at the cost of lower wages beyond STW benefit receipt, as workers face a substantial wage penalty almost three years after entering STW." (Author's abstract, IAB-Doku, © 2026 The Authors. Published by Elsevier B.V.) ((en))