Journal article

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

Publication Details
Author(s): Gehrke B, Lechthaler W, Merkl C, Balleer A
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.

Focus Area of Individual Faculties

How to cite
APA: 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.

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

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