scholarly journals Short-Time Work and Unemployment in and after the Great Recession

2021 ◽  
Author(s):  
Daniel Kopp ◽  
Michael Siegenthaler
Keyword(s):  
Panel Data ◽  
Labor Force ◽  
Administrative Data ◽  
Great Recession ◽  
Data Sources ◽  
Unemployment Benefits ◽  
The Great Recession ◽  
Time Work ◽  
Short Time

Abstract We study whether the Swiss short-time work (STW) program reduced unemployment in and after the Great Recession using quarterly establishment-level panel data linking administrative data sources. We compare changes in layoffs into unemployment, employment, and establishment survival between establishments that applied successfully and establishments that applied unsuccessfully for STW at cantonal employment agencies. The unsuccessful establishments provide a valid counterfactual for the successful ones because cantonal approval practices are partly idiosyncratic. We find that STW increases establishment survival and prevents rather than postpones dismissals. The 7,857 establishments treated in 2009 would have dismissed 20,600 additional workers into unemployment (0.47% of the labor force) until 2012. Most workers would have been dismissed in the quarters immediately following the application, and more than a third would have become long-term unemployed. The savings on unemployment benefits may have compensated for the spending on STW benefits.

scholarly journals Autonomes Fahren statt Stop and Go: Vorschläge zur effektiven Gestaltung der deutschen Kurzarbeit

2019 ◽  
Vol 68 (3) ◽  
pp. 252-260
Author(s):  
Almut Balleer ◽  
Britta Gehrke ◽  
Brigitte Hochmuth ◽  
Christian Merkl
Keyword(s):  
Labor Market ◽  
Business Cycle ◽  
Great Recession ◽  
Timely Manner ◽  
Rule Based ◽  
The Great Recession ◽  
Stop And Go ◽  
Time Work ◽  
The Business Cycle ◽  
Short Time

Abstract This article argues that short-time work stabilized employment in Germany substantially during the Great Recession in 2008/09. The labor market instrument acted in timely manner, as it was used in a rule-based fashion. In addition, discretionary extensions were effective due to their interaction with the business cycle. To ensure that short-time work will be effective in the future, this article proposes an automatic facilitation of the access to short-time work in severe recessions. This reduces the likelihood of a too extensive use at the wrong point in time as well as structural instead of cyclical interventions.

scholarly journals Temping fates in Spain: hours and employment in a dual labor market during the Great Recession and COVID-19

SERIEs ◽  
2021 ◽  
Author(s):  
Cristina Lafuente ◽  
Raül Santaeulàlia-Llopis ◽  
Ludo Visschers
Keyword(s):  
Labor Market ◽  
Great Recession ◽  
Dual Labor Market ◽  
Total Employment ◽  
Temporary Contracts ◽  
The Great Recession ◽  
Time Work ◽  
Short Time ◽  
Permanent Workers ◽  
The Impact

AbstractWe investigate the behavior of aggregate hours supplied by workers in permanent (open-ended) contracts and temporary contracts, distinguishing changes in employment (extensive margin) and hours per worker (intensive margin). We focus on the differences between the Great Recession and the start of the COVID-19 Recession. In the Great Recession, the loss in aggregate hours is largely accounted for by employment losses (hours per worker did not adjust) and initially mainly by workers in temporary contracts. In contrast, in the early stages of the COVID-19 Recession, approximately sixty percent of the drop in aggregate hours is accounted for by permanent workers that do not only adjust hours per worker (beyond average) but also face employment losses—accounting for one-third of the total employment losses in the economy. We argue that our comparison across recessions allows for a more general discussion on the impact of adjustment frictions in the dual labor market and the effects policy, in particular the short-time work policy (ERTE) in Spain.

scholarly journals Macroeconomic Implications of the German Short-time Work Policy during the Great Recession

Global Policy ◽  
2013 ◽  
Vol 4 ◽  
pp. 30-40 ◽  
Author(s):  
Alexander Herzog-Stein ◽  
Gustav A. Horn ◽  
Ulrike Stein
Keyword(s):  
Great Recession ◽  
The Great Recession ◽  
Time Work ◽  
Macroeconomic Implications ◽  
Short Time

scholarly journals Labor Market Trends and Outcomes: What Has Changed since the Great Recession?

2021 ◽  
Vol 695 (1) ◽  
pp. 49-69
Author(s):  
Erica L. Groshen ◽  
Harry J. Holzer
Keyword(s):  
High School ◽  
Labor Force ◽  
Labor Force Participation ◽  
Great Recession ◽  
High School Education ◽  
The Great Recession ◽  
Long Term Trends ◽  
Market Trends ◽  
Early Effects

This article describes 40 years of trends in wages and labor force participation for the “working class”—workers with a high school education or less—compared to workers with a college degree or more. We compare cyclical peaks over the entire period 1979 to 2019, with particular focus on the Great Recession (2007–2010) and recovery (2010–2019). We also present results by gender and race. We find real wage growth for all workers in the recovery from the Great Recession, but not enough to change the long-term trends of growing inequality and stagnant wages for the less educated. We also find that labor force participation continued to decline for the less educated, even during the recovery. Gaps between whites and Blacks grew, while Hispanics and Asians made more progress than Blacks. We consider various explanations for these findings and show that the early effects of the 2020 to 2021 pandemic recession hurt less-educated workers and those of color more than anyone else.

scholarly journals THE EXTENSION OF SHORT-TIME WORK SCHEMES DURING THE GREAT RECESSION: A STORY OF SUCCESS?

2018 ◽  
Vol 24 (2) ◽  
pp. 360-402 ◽  
Author(s):  
Björn Brey ◽  
Matthias S. Hertweck
Keyword(s):  
Unemployment Rate ◽  
Great Recession ◽  
Oecd Countries ◽  
Gdp Growth ◽  
Eligibility Criteria ◽  
The Great Recession ◽  
Automatic Stabilizer ◽  
Time Work ◽  
Short Time

This paper evaluates the effectiveness of short-time work (STW) extensions—e.g., relaxing eligibility criteria or implementing new schemes—in OECD countries during 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 pre-existing STW schemes were able to fully exploit the benefits of STW. Third, the effects of STW were strongest when GDP growth was deeply negative at the beginning of the recession. In summary, our results indicate that STW is most effective when used as a fast-responding automatic stabilizer.

scholarly journals Short-Time Work: The German Answer to the Great Recession

2011 ◽  
Author(s):  
Karl Brenke ◽  
Ulf Rinne ◽  
Klaus F. Zimmermann
Keyword(s):  
Great Recession ◽  
The Great Recession ◽  
Time Work ◽  
Short Time

scholarly journals The Impact of the Great Recession on Mothers’ Employment

2020 ◽  
Author(s):  
Liana Christin Landivar
Keyword(s):  
Labor Force ◽  
Labor Force Participation ◽  
Great Recession ◽  
Job Experience ◽  
The Great Recession ◽  
Married Mothers ◽  
Employment Rates ◽  
Tight Labor Market ◽  
The Impact

In all recent recessions, men’s unemployment has been higher than women’s because they are disproportionately likely to be concentrated in cyclical industries such as construction and manufacturing. This recession has been particularly severe for men and women, as they are both experiencing unprecedented levels of long-term unemployment, along with declining wages. Because of the severity of the recession, married mothers of young children may have increased their labor force participation to compensate for their husbands’ under- or unemployment. Using 2006 and 2010 American Community Survey data, I show that married mothers’ increased labor force participation likely occurred in households that were less economically disadvantaged prior to the recession. The demand for married women’s employment should have been stronger in households where men were employed in industries that were hard-hit by the recession. However, employment rates were lower among women married to men with lower earnings who are or were employed in construction and agriculture, the two industries with the highest levels of unemployment. Because their wives were less likely to be employed prior to the start of the recession, they may have been at a stronger disadvantage in obtaining employment in a tight labor market without recent job experience.

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