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Short-Time Work in German Firms


  • Marina Hoffmann
  • Stefan Schneck


The aim of this paper is twofold. First, we describe determinants for the use of short-time work during the economic recession 2008 / 2009. Second, post-crisis changes in turnover and employment are analyzed with focus on the use of short-time work. The analysis is restricted to firms in the manufacturing sector in Germany. We present evidence that small firms are less likely to utilize short-time work. With respect to the post-crisis economic development, multivariate analysis suggests that short-time work is significantly negatively correlated with employment growth even after accounting for changes in turnover. This might indicate a period of jobless growth after utilization of short-time work.

Suggested Citation

  • Marina Hoffmann & Stefan Schneck, 2011. "Short-Time Work in German Firms," Applied Economics Quarterly (formerly: Konjunkturpolitik), Duncker & Humblot, Berlin, vol. 57(4), pages 233-254.
  • Handle: RePEc:aeq:aeqaeq:v57_y2011_i4_q4_p233-254

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    References listed on IDEAS

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    Cited by:

    1. Münstermann, Leonard & Schneck, Stefan & Wolter, Hans-Jürgen, 2012. "Die Bedeutung des Kurzarbeitergeldes im Mittelstand," IfM-Materialien 215, Institut für Mittelstandsforschung (IfM) Bonn.

    More about this item


    short-time work; labor hoarding; employment growth;

    JEL classification:

    • J2 - Labor and Demographic Economics - - Demand and Supply of Labor
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General


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