The extension of short-time work schemes during the Great Recession : A story of success?

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2016
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This paper evaluates the effectiveness of short-time work [STW] extensions - e.g. relaxing eligibility criteria or implementing new STW schemes - in the OECD during and after the Great Recession. First, we find that the dampening effect of STW on the unemployment rate diminishes at higher take-up rates. Second, only countries with preexisting STW schemes were able to fully exploit the benefits of STW. Third, the effects of STW are strongest when GDP growth is deeply negative at the beginning of recessions. Our results indicate that STW is most effective when used as a fast-responding automatic stabilizer.

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330 Wirtschaft
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job destruction, labor policy, short-time work, unemployment
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ISO 690BREY, Björn, Matthias Sebastian HERTWECK, 2016. The extension of short-time work schemes during the Great Recession : A story of success?
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@techreport{Brey2016exten-35525,
  year={2016},
  series={Working Paper Series / Department of Economics},
  title={The extension of short-time work schemes during the Great Recession : A story of success?},
  number={2016-05},
  author={Brey, Björn and Hertweck, Matthias Sebastian}
}
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