Does Short-Time Work Save Jobs? A Business Cycle Analysis

Journal article

Publication Details

Author(s): Gehrke B, Lechthaler W, Merkl C, Balleer A
Journal: European Economic Review
Publisher: Elsevier
Publication year: 2016
Volume: 84
Pages range: 99-122
ISSN: 0014-2921
Language: English


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 is 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.

FAU Authors / FAU Editors

Gehrke, Britta Prof. Dr.
Juniorprofessur für Makroökonomie und Arbeitsmarktforschung
Merkl, Christian Prof. Dr.
Lehrstuhl für Volkswirtschaftslehre, insbesondere Makroökonomik

Research Fields

Change in the World of Work
Research focus area of a faculty: Fachbereich Wirtschaftswissenschaften

How to cite

Gehrke, B., Lechthaler, W., Merkl, C., & Balleer, A. (2016). Does Short-Time Work Save Jobs? A Business Cycle Analysis. European Economic Review, 84, 99-122.

Gehrke, Britta, et al. "Does Short-Time Work Save Jobs? A Business Cycle Analysis." European Economic Review 84 (2016): 99-122.


Last updated on 2018-18-10 at 03:00