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Work Sharing: The Quick Route Back to Full Employment

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  • Dean Baker

Abstract

This paper outlines a proposal for a system of work sharing that would give employers an incentive to maintain workers on their payroll at reduced hours as an alternative to laying them off. The system would be attached to the existing system of unemployment compensation, with shorttime compensation as an alternative to unemployment compensation. This means that work sharing would require no new government bureaucracy. In fact, 21 states (including California and New York) already have short-time compensation as an option under their unemployment insurance system. In these states a governmental structure already exists to support work sharing, although there would have to be changes to make the system more user friendly so as to increase take-up rates.

Suggested Citation

  • Dean Baker, 2011. "Work Sharing: The Quick Route Back to Full Employment," CEPR Reports and Issue Briefs 2011-15, Center for Economic and Policy Research (CEPR).
    • Handle: RePEc:epo:papers:2011-15
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    File URL: http://www.cepr.net/documents/publications/work-sharing-2011-06.pdf
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    References listed on IDEAS

    as
    1. Robert Shimer, 2008. "The Probability of Finding a Job," American Economic Review, American Economic Association, vol. 98(2), pages 268-273, May.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Nägele, Johannes, 2017. "Eine keynesianische Analyse der Beschäftigungswirkung einer Arbeitszeitverkürzung [A Keynesian analysis of the employment effects of a working time reduction]," MPRA Paper 82109, University Library of Munich, Germany.
    2. Piotr Lewandowski & Marek Antosiewicz & Jan Baran & Iga Magda & Monika Potoczna & Maciej Lis & Joanna Tyrowicz & Agnieszka Kaminska & Jan Hagemejer & Karol Pogorzelski, 2013. "Employment in Poland 2012. Labour Market During the Recovery from the Crisis," Books and Reports published by IBS, Instytut Badan Strukturalnych, number zwp2012 edited by Piotr Lewandowski & Iga Magda, january.
    3. John Komlos, 2015. "How Natural Is the Natural Rate of Unemployment?," Challenge, Taylor & Francis Journals, vol. 58(2), pages 160-167, March.
    4. Erinç Yeldan, 2013. "The Turkish experience with work-sharing policy during the global economic crisis, 2008–2010," Chapters, in: Jon C. Messenger & Naj Ghosheh (ed.), Work Sharing during the Great Recession, chapter 5, pages 119-150, Edward Elgar Publishing.
    5. Xavier Giroud & Holger M. Mueller, 2017. "Firm Leverage, Consumer Demand, and Employment Losses during the Great Recession," Working Papers 17-01, Center for Economic Studies, U.S. Census Bureau.
    6. Herbert Gans, 2013. "Work-Time Reduction: Possibilities and Problems," Challenge, Taylor & Francis Journals, vol. 56(5), pages 62-73.
    7. John Komlos, 2016. "Unemployment in a Just Economy," CESifo Working Paper Series 5974, CESifo.

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    More about this item

    Keywords

    work sharing; unemployment; employment; recession; Germany; United States;
    All these keywords.

    JEL classification:

    • E - Macroeconomics and Monetary Economics
    • E2 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • E6 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook
    • E66 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - General Outlook and Conditions
    • H - Public Economics
    • J - Labor and Demographic Economics
    • J6 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers
    • J65 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment Insurance; Severance Pay; Plant Closings
    • J68 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Public Policy

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