EconPapers    
Economics at your fingertips  
 

Inefficient Short-Time Work

Pierre Cahuc and Sandra Nevoux

No 2019-03, Sciences Po Economics Discussion Papers from Sciences Po Departement of Economics

Abstract: This paper shows that the reforms which expanded short-time work in France after the great 2008-2009 recession were largely to the benefit of large firms which are recurrent short-time work users. We argue that this expansion of short-time work is an inefficient way to provide insurance to workers, as it entails cross-subsidies which reduce aggregate production. An efficient policy should provide unemployment insurance benefits funded by experience rated employers’ contributions instead of short-time work benefits. We find that short-time work entails significant production losses compared to an unemployment insurance scheme with experience rating.

Keywords: Short-time work; Unemployment insurance; Experience rating (search for similar items in EconPapers)
JEL-codes: J63 J65 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-ias, nep-lab and nep-ltv
Date: 2019-03
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
https://spire.sciencespo.fr/hdl:/2441/68ufmnnh3j9v ... -short-time-work.pdf (application/pdf)

Related works:
Working Paper: Inefficient Short-Time Work (2019) Downloads
Working Paper: Inefficient Short-Time Work (2018) Downloads
Working Paper: Inefficient Short-Time Work (2017) Downloads
Working Paper: Inefficient Short-Time Work (2017) Downloads
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:spo:wpecon:info:hdl:2441/68ufmnnh3j9vmblf03huqt18qe

Access Statistics for this paper

More papers in Sciences Po Economics Discussion Papers from Sciences Po Departement of Economics Contact information at EDIRC.
Bibliographic data for series maintained by Sciences Po Departement of Economics Series Handler ().

 
Page updated 2019-10-02
Handle: RePEc:spo:wpecon:info:hdl:2441/68ufmnnh3j9vmblf03huqt18qe