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

Gehrke B, Lechthaler W, Merkl C, Balleer A (2016)

Publication Language: English

Publication Type: Journal article

Publication year: 2016


Publisher: Elsevier

Book Volume: 84

Pages Range: 99-122

DOI: 10.1016/j.euroecorev.2015.05.007


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.

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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.

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