Short-Time Work: The German Answer to the Great Recession

Karl Brenke (), Ulf Rinne and Klaus Zimmermann ()
Additional contact information
Karl Brenke: DIW Berlin

No 5780, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: Short-time work was the "German answer" to the economic crisis. The number of short-time workers strongly increased in the recession and peaked at more than 1.5 million. Without the extensive use of short-time work, unemployment would have risen by approximately twice as much as it actually did. Short-time work has certainly contributed to the mild response of the German labor market to the crisis, but this is likely due to the country-specific context. Although the crisis has been overcome and employment is strongly expanding, modified regulations governing short-time work are still in place. This leads to undesired side effects.

Keywords: short-time work compensation; labor market policy; economic crisis; partially unemployed workers (search for similar items in EconPapers)
JEL-codes: J65 J68 (search for similar items in EconPapers)
Pages: 29 pages
Date: 2011-06
New Economics Papers: this item is included in nep-eec, nep-lab and nep-ltv
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (34)

Published - revised version published in: International Labour Review , 2013, 152 (2), 287-305 / spanish version published as 'Desempleo parcial, la respuesta alemana a la Gran Recesión' in: Revista Internacional del Trabajo , 2013, 132 (2), 325-344 / french version published as 'Le chômage partiel: réponse de l'Allemagne face à la grande récession' in: Revue internationale du Travail , 2013, 152 (2), 311-330

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Related works:
Journal Article: Short-time work: The German answer to the Great Recession (2013)
Working Paper: Short-Time Work: The German Answer to the Great Recession (2011)
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