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Short-Time Compensation as a Policy to Stabilize Employment

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Author Info

  • Wayne Vroman

    (The Urban Institute)

  • Vera Brusentsev

    () (Department of Economics,University of Delaware)

Abstract

Short-time compensation (STC or work sharing) is a labor adjustment measure designed to reduce or eliminate reliance on layoffs when firms need to reduce hours worked. It spreads the reduction in hours among a wide pool of workers and provides partial unemployment compensation for the reduced hours. This paper examines STC with attention to experiences in Canada and Germany as well as the United States. It also suggests ways to increase STC use in the United States.

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File URL: http://www.lerner.udel.edu/sites/default/files/imce/economics/WorkingPapers/2009/UDWP2009-10.pdf
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Bibliographic Info

Paper provided by University of Delaware, Department of Economics in its series Working Papers with number 09-10.

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Length: 19 pages
Date of creation: 2009
Date of revision:
Handle: RePEc:dlw:wpaper:09-10.

Contact details of provider:
Postal: Purnell Hall, Newark, Delaware 19716
Phone: (302) 831-2551
Fax: (302) 831-6968
Web page: http://www.lerner.udel.edu/departments/economics/
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Related research

Keywords: employment retention; short-time compensation; Work-sharing; Wage compensation; unemployment insurance; workplace relations; social sector reform.;

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Cited by:
  1. Hijzen, Alexander & Martin, Sébastien, 2013. "The Role of Short-Time Work Schemes during the Global Financial Crisis and Early Recovery: A Cross-Country Analysis," IZA Discussion Papers 7291, Institute for the Study of Labor (IZA).

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