Does short-time work save jobs? A business cycle analysis
Number of Authors: 4
2016 (English)In: European Economic Review, ISSN 0014-2921, E-ISSN 1873-572X, Vol. 84, 99-122 p.Article in journal (Refereed) Published
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.
Place, publisher, year, edition, pages
2016. Vol. 84, 99-122 p.
Short-time work, Fiscal policy, Business cycles, Search and matching, SVAR
Economics and Business
IdentifiersURN: urn:nbn:se:su:diva-131215DOI: 10.1016/j.euroecorev.2015.05.007ISI: 000375632400007OAI: oai:DiVA.org:su-131215DiVA: diva2:936731