Germanys Labour Market in Coronavirus Distress New Challenges to Safeguarding Employment

Alexander Herzog-Stein, Patrick Nuess (), Lennert Peede () and Ulrike Stein
Additional contact information
Patrick Nuess: Kiel University
Lennert Peede: University of Muenster
Authors registered in the RePEc Author Service: Patrick Nüß

No 209-2021, IMK Working Paper from IMK at the Hans Boeckler Foundation, Macroeconomic Policy Institute

Abstract: We analyse measures of internal flexibility taken to safeguard employment during the Coronavirus Crisis in comparison to the Great Recession. Cyclical working-time reductions are again a major factor in safeguarding employment. Whereas during the Great Recession all working-time instruments contributed to the reduction in working time, short-time work now accounts for almost all of the working-time reduction. Short-time work was more rapidly extended, more generous, and for the first time a stronger focus was put on securing household income on a broad basis. Still, the current crisis is more severe and affects additional sectors of the economy where low-wage earners are affected more frequently by short-time work and suffered on average relatively greater earnings losses. A hypothetical average short-time worker had a relative income loss in April 2020 that was more than twice as large as that in May 2009. Furthermore, marginal employment is affected strongly but not protected by short-time work.

JEL-codes: E24 E32 J08 J20 (search for similar items in EconPapers)
Pages: 40 pages
Date: 2021
New Economics Papers: this item is included in nep-mac
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Citations: View citations in EconPapers (5)

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Working Paper: Germany's Labour Market in Coronavirus Distress - New Challenges to Safeguarding Employment (2021)
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Persistent link: https://EconPapers.repec.org/RePEc:imk:wpaper:209-2021

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