Short-time work: Does it save jobs?

Balleer, Almut,  Gehrke, Britta, Lechthaler, Wolfgang & Merkl, Christian.

During the Great Recession, 25 of 33 OECD countries have used some version of short-time work, a form of publicly subsidised working-time reductions. This column argues that despite its popularity, knowledge of the macroeconomic effects of this measure is limited. Using Germany as a case study, it’s clear that the existence of a short-time work system stabilises the economy and reduces job losses by roughly 20% during a recession. However, short-time work is a lot less effective for Anglo-Saxon labour markets.

Πηγή: Voxeu

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