Active labour market policies and short-time work arrangements: Evidence from a survey of Luxembourg firms

Konstantinos Efstathiou (), Thomas Mathä, Cindy Veiga () and Ladislav Wintr

No 110, BCL working papers from Central Bank of Luxembourg

Abstract: We analyse the use of active labour market policy (ALMP) measures and short-time work arrangements (STWAs) by Luxembourg firms during the years of economic and financial crisis (2008-09) and the subsequent European sovereign debt crisis (2010-13). About 34% of Luxembourg firms used ALMPs between 2008 and 2013. Economy-wide, use of ALMPs increased along both the extensive margin (more firms) and the intensive margin (more measures per firm). The likelihood that a firm hired with recourse to ALMPs is greater for large, domestically oriented, multiple establishment firms, firms facing strong demand, with concerns about labour cost pressures and unavailability of skilled labour. The crisis saw a surge in firms using STWAs. The likelihood of applying for STWAs increases with demand volatility, the share of workers with permanent contracts, export orientation and the inability to shift workers between establishments. Firms reported that 20-25% of jobs in STWAs were saved by this measure.

Keywords: Firms; survey; crisis; active labour market policy; short-time work arrangements (search for similar items in EconPapers)
JEL-codes: C25 J63 J68 (search for similar items in EconPapers)
Pages: 51 pages
Date: 2017-06
New Economics Papers: this item is included in nep-bec and nep-eur
References: Add references at CitEc
Citations: View citations in EconPapers (1)

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Working Paper: Active labour market policies and short-time work arrangements: evidence from a survey of Luxembourg firms (2017)
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Persistent link: https://EconPapers.repec.org/RePEc:bcl:bclwop:bclwp110

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