Short-time work: the German answer to the Great Recession
Brenke, Karl ; Rinne, Ulf ; Zimmermann, Klaus F.
Institute of Labor Economics, Bonn
IZA - Bonn
2011
26 p.
economic recession ; short time working ; statistics ; unemployment ; labour market policy
Discussion Paper Series
5780
Unemployment
English
Bibliogr.
"Short-time work was the "German answer" to the economic crisis. The number of short-time workers strongly increased in the recession and peaked at more than 1.5 million. Without the extensive use of short-time work, unemployment would have risen by approximately twice as much as it actually did. Short-time work has certainly contributed to the mild response of the German labor market to the crisis, but this is likely due to the country-specific context. Although the crisis has been overcome and employment is strongly expanding, modified regulations governing short-time work are still in place. This leads to undesired side effects."
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