Flexible Use of the Large-Scale Short-Time Work Scheme in Germany during the Pandemic: Dynamic Labour Demand Models Estimation with High-Frequency Establishment Data

Lisa Bellmann (), Lutz Bellmann () and Arnd Kölling
Additional contact information
Lisa Bellmann: Institute for Employment Research (IAB), 90478 Nuremberg, Germany
Lutz Bellmann: Institute for Employment Research (IAB), 90478 Nuremberg, Germany
Arnd Kölling: HWR Berlin School of Economics and Law, Alt Friedrichsfelde 60, D-10315 Berlin, Germany

Economies, 2023, vol. 11, issue 7, 1-17

Abstract: Our study uses 24 waves of the survey Establishments in the COVID-19 crisis (BeCOVID), a high-frequency dataset collected at monthly intervals by the Institute for Employment Research during the COVID-19 pandemic, to investigate the behaviour of establishments with respect to the dynamics of their employment, in particular their use of short-time work. Due to the high-frequency intervals, the present data are considerably better suited than annual panel surveys to investigate adjustment processes. This is especially true for the role of short-time work, which is seen as a particularly fast adjustment option and thus reduces adjustment costs rapidly. Our estimations reveal a much faster overall workforce adjustment process compared with previous studies, which rely on annual panel surveys. In addition, our empirical results show that the employment adjustment in establishments using short-time work during the COVID-19 crisis occurred almost immediately within one month.

Keywords: short-time work; COVID-19; dynamic labour demand; panel analysis; high-frequency establishment data (search for similar items in EconPapers)
JEL-codes: E F I J O Q (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.mdpi.com/2227-7099/11/7/192/pdf (application/pdf)
https://www.mdpi.com/2227-7099/11/7/192/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gam:jecomi:v:11:y:2023:i:7:p:192-:d:1193577

Access Statistics for this article

Economies is currently edited by Ms. Hongyan Zhang

More articles in Economies from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().