Germany's Labour Market in Coronavirus Distress - New Challenges to Safeguarding Employment

Alexander Herzog-Stein, Patrick Nüß, Lennert Peede and Ulrike Stein

No 840, GLO Discussion Paper Series from Global Labor Organization (GLO)

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 (STW) now accounts for almost all of the working-time reduction. STW 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 STW 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 STW.

Keywords: Internal Flexibility Short-Time Work; Business Cycles; Great Recession; Coronavirus Crisis (search for similar items in EconPapers)
JEL-codes: E24 E32 J08 J20 (search for similar items in EconPapers)
Date: 2021
New Economics Papers: this item is included in nep-eec, nep-eur, nep-lab and nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

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Working Paper: Germanys Labour Market in Coronavirus Distress New Challenges to Safeguarding Employment (2021)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:glodps:840

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