Short-Time Work Policies During the Covid-19 Pandemic

Julien Albertini, Xavier Fairise (), Arthur Poirier and Anthony Terriau

Annals of Economics and Statistics, 2022, issue 146, 123-172

Abstract: In this paper, we analyze the impact of short-time work programs on the French labor market during the COVID-19 pandemic. We develop a dynamic model with incomplete markets, search frictions, human capital, and aggregate and idiosyncratic productivity shocks. We calibrate our model and simulate what the labor market response to a lockdown shock would have been under various STW programs. We show that STW succeeded in stabilizing employment and consumption but generated substantial windfall effects characterized by an excessive reduction in hours worked.

Keywords: COVID-19; Matching Frictions; Short-Time Work Policies; Incomplete Markets (search for similar items in EconPapers)
JEL-codes: E21 E24 J24 J38 J63 J65 (search for similar items in EconPapers)
Date: 2022
References: Add references at CitEc
Citations: View citations in EconPapers (1)

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Related works:
Working Paper: Short-time work policies during the COVID-19 pandemic (2022)
Working Paper: SHORT-TIME WORK POLICIES DURING THE COVID-19 PANDEMIC (2022)
Working Paper: Short-time work policies during the COVID-19 pandemic (2022)
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Persistent link: https://EconPapers.repec.org/RePEc:adr:anecst:y:2022:i:146:p:123-172

DOI: 10.2307/48674141

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