Does Short-Time Work Save Jobs? A Business Cycle Analysis
Almut Balleer (),
Britta Gehrke (),
Wolfgang Lechthaler and
Christian Merkl ()
No 7475, IZA Discussion Papers from Institute of Labor Economics (IZA)
In the Great Recession most OECD countries used short-time work (publicly subsidized working time reductions) to counteract a steep increase in unemployment. We show that short-time work can actually save jobs. However, there is an important distinction to be made: While the rule-based component of short-time work is a cost-efficient job saver, the discretionary component appears to be completely ineffective. In a case study for Germany, we use the rich data available to combine micro- and macroeconomic evidence with macroeconomic modeling in order to identify, quantify and interpret these two components of short-time work.
Keywords: business cycles; fiscal policy; short-time work; search-and-matching; SVAR (search for similar items in EconPapers)
JEL-codes: E24 E32 E62 J08 J63 (search for similar items in EconPapers)
Pages: 42 pages
New Economics Papers: this item is included in nep-lab and nep-mac
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Published in: European Economic Review, 2016, 84, 99–122
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Journal Article: Does short-time work save jobs? A business cycle analysis (2016)
Working Paper: Does short-time work save jobs? A business cycle analysis (2013)
Working Paper: Does Short-Time Work Save Jobs? A Business Cycle Analysis (2013)
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